liquidations

Most retail traders believe price moves because of indicators, patterns, or news. In reality, price is simply a reaction. Liquidity is the real driver of every major move in the market.
What Is Liquidity in Simple Terms?
Liquidity refers to areas in the market where a large number of buy or sell orders are resting.
These usually sit around:
Equal highs and equal lowsObvious support and resistance levelsStop-loss clusters of retail traders
Smart money doesn’t chase price. It hunts liquidity.
Why Price Moves Suddenly
When price looks “calm” and then suddenly explodes, it’s not random. Large players push price into liquidity zones to:
Trigger stop lossesFill large institutional ordersCreate imbalance in supply and demand
Once liquidity is collected, price moves freely in the intended direction.
False Breakouts Are Not Traps — They Are Liquidity Grabs
Many traders get frustrated by fake breakouts. But from a liquidity perspective:
Breakouts above highs collect buy-side liquidityBreakdowns below lows collect sell-side liquidity
After liquidity is taken, price often reverses sharply, leaving late traders trapped.
Indicators Lag — Liquidity Leads
Indicators react after the move has already started.
Liquidity, however, exists before the move.
That’s why:
News acts as a catalyst, not the causePatterns work only when aligned with liquidityStrong moves begin where liquidity is highest
How Smart Traders Think
Instead of asking “Is price bullish or bearish?”, ask:
Where is liquidity resting?Who is trapped right now?Which side has more stops?
When you understand liquidity, market behavior becomes logical, not emotional.
My Thought
Price doesn’t move to reward traders.
Price moves to take liquidity.
Once you stop chasing indicators and start reading liquidity,
you don’t predict the market — you understand it.
#BTC #Write2Earn #Liquidations
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