Glossary
What is Liquidity
A cluster of orders in one place — most often stops behind obvious highs and lows. Large players need opposing orders to fill, so price often travels there.
How it works
BTC 15m: three near-equal lows — buyers' stops sit below them.
Example
Lows at 62 690, 62 650 and 62 664 — within 40 $. Whoever bought there hid a stop just below — that is the liquidity.
Common mistake
Placing your stop exactly where everyone else does: right behind the obvious low.
Read next
Related terms
Frequently asked questions
- Where can I learn Liquidity step by step?
- In the Trading OS Academy: “Why price goes hunting for stops”, “Where the crowd's stops sit”.
- What is Liquidity related to?
- Equal highs / lows; Sweep — liquidity grab; Stop-loss.
Plan versus outcome — for every trade
The Trading OS journal keeps the planned RR and the actual R of each trade side by side and computes expectancy from real results.
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