HOW PRICE REACTS TO DEMAND

liquidity zones play a crucial role in shaping market moves. When price hits a demand or supply zone, it's often just the beginning of a liquidity hunt. We frequently see price spiking to these areas to “sweep” liquidity—essentially taking out stop losses and trapping both buyers and sellers who enter too early.

Typically, the market likes to form structures such as double bottoms or double tops, which attract breakout traders. But more often than not, price reverses unexpectedly after these formations, trapping breakout traders on the wrong side. After these liquidity sweeps, the market gathers the fuel it needs to move with purpose, often correcting imbalances left behind from rapid moves.

This collected liquidity enables a strong, healthier momentum in either direction. So, patience is key—waiting for confirmation of liquidity grabs at resistance or support zones gives a stronger signal and often provides safer entry points.






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