Liquidity-Based Trading

A large buy liquidity pool can mark a point where buyers regain control and price reverses upward. In live trading, orderflow heat maps reveal the auction process in real time. Large liquidity clusters can serve as trade targets because price is likely to gravitate toward them. Traders can monitor liquidity levels and predict price behavior based on available liquidity at each level. Large orders that appear, remain unfilled, and are repeatedly removed can anticipate price breakdowns.