Liquidity is the real driver of the market here's why👇
Price doesn’t move randomly.
It moves towards orders.
Liquidity means a bunch of orders sitting at important levels —
📍 above highs
📍 below lows
These are mostly: • Stop losses from retail traders
• Pending orders from big players
What usually happens?
1.Price moves to a major high or low
2. All those stops and orders get triggered
3. Liquidity gets taken
4.Then price reverses
Why the reversal?
Because smart money just got filled.
They use that liquidity to enter positions, then push price in the real direction.
That’s why you often see: • A spike above a high, then a sharp drop ⬇️
• A sweep below a low, then a strong rally ⬆️
Simple truth:
The market needs liquidity to move.
And it will always hunt it before the real move starts.