💧 Understanding Liquidity — and How It Impacts Your Cease Loss
🎯 The Lesson
Merchants love clear entries…
however the market loves liquidity.
Your cease loss isn’t only a security device —
it’s a goal for large gamers trying to fill orders.
In case you don’t perceive liquidity, you’ll preserve getting stopped out by “spikes,”
even when your route is right.
⚙️ Step 1: What Is Liquidity?
Liquidity = zones the place many orders sit.
Banks and establishments want liquidity to execute giant positions.
The place do they discover it?
👉 Under lows (promote stops)
👉 Above highs (purchase stops)
These zones develop into magnets.
Worth typically goes there earlier than shifting in the true route.
📉 Step 2: Why Your Stops Get Hit Even When Your Bias Is Appropriate
You purchase at help.
Worth wicks down, hits your cease…
then shoots up with out you.
Did you misinterpret route?
No.
Worth merely grabbed liquidity beneath the low.
Instance:
Your cease was sitting contained in the liquidity zone.
đź“Š Step 3: Place Stops Past Liquidity, Not Inside
In case your cease sits the place liquidity sits, you’ll get hunted.
Appropriate placement:
This offers your commerce area to outlive the sweep.
Instance:
Small distinction → huge affect.
🧮 Step 4: Mix Liquidity With ATR
Don’t guess the space.
Use ATR to measure regular volatility so that you don’t place stops too shut.
Components:
Cease = Liquidity Degree – (ATR × 0.5 to 1)
This ensures your cease sits:
✔️ past liquidity
✔️ past noise
✔️ past random spikes
🔎 Step 5: Know The place Liquidity Swimming pools Kind
Frequent liquidity zones:
-
Earlier day’s excessive/low
-
Asian session excessive/low
-
Session open ranges
-
Consolidation boundaries
-
Double tops / double bottoms
-
Apparent retail cease zones
If it appears to be like “excellent,” it’s full of stops.
Massive gamers know this — they usually use it.
🚀 Takeaway
The market isn’t looking you —
it’s looking your cease placement.
Whenever you place stops past liquidity, not inside it, your accuracy improves immediately.
Most merchants aren’t improper — their stops are.
Grasp liquidity, and the market will cease shaking you out.
📢 Be part of my MQL5 channel for extra buying and selling & risk-management insights:
👉 https://www.mql5.com/en/channels/issam_kassas
