The pool of resting orders (stops and pending entries) clustered at obvious price levels.
Liquidity is the fuel markets run on. It exists wherever clusters of stop-loss orders and breakout entry orders rest: above swing highs (buy-side liquidity — shorts' stops and longs' breakout entries), below swing lows (sell-side liquidity — longs' stops and shorts' breakout entries), and at obvious round numbers. Price is drawn to liquidity because large players need opposing orders to fill their size. Understanding where liquidity sits tells you where price is likely to go — and where it's likely to reverse after taking it.
The market moves from pool to pool. If you know where the pools are, you stop being the liquidity and start trading alongside the ones who take it.
ON high at 5,847. Every breakout buyer has orders there; every short has stops above. Price runs to 5,849, fills them all, and reverses. The liquidity grab IS the Reveal.
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