When big players take their positions, they certainly aim for the best prices.
However, looking at the size of their positions, it is a challenge to find sufficient counter-forces to fill the orders.
WHAT IS LIQUIDITY GRAB?
If such a trader enters the market at a low liquidity area, the volatility it creates impacts the average price negatively.
Lower liquidity generally results in a more volatile market, bringing drastic changes in the prices.
On the other hand, if that trader enters the trade at an area of higher liquidity, it results in a less volatile market where prices don’t change so drastically, ensuring a better average price for the position.
These are the zones where stop-loss orders are placed.
The concept of ‘liquidity grab’ comes from the need for big players to enter the market in liquidity zones as they look to take large positions.
Check out the chart and its self explanatory. Similar what happen last year, we have a liquidity grab on the month of May.
Breaking out in the previous support area and hoping to reverse back in the range after the breakout .
Disclaimer Note: Please do your own technical analysis and make this chart as a guide only.
However, looking at the size of their positions, it is a challenge to find sufficient counter-forces to fill the orders.
WHAT IS LIQUIDITY GRAB?
If such a trader enters the market at a low liquidity area, the volatility it creates impacts the average price negatively.
Lower liquidity generally results in a more volatile market, bringing drastic changes in the prices.
On the other hand, if that trader enters the trade at an area of higher liquidity, it results in a less volatile market where prices don’t change so drastically, ensuring a better average price for the position.
These are the zones where stop-loss orders are placed.
The concept of ‘liquidity grab’ comes from the need for big players to enter the market in liquidity zones as they look to take large positions.
Check out the chart and its self explanatory. Similar what happen last year, we have a liquidity grab on the month of May.
Breaking out in the previous support area and hoping to reverse back in the range after the breakout .
Disclaimer Note: Please do your own technical analysis and make this chart as a guide only.
If the price CONTINUE TO REVERSE, we might go up till 39k again... lets see and observe