Liquidity Seeking
Price tends to move toward areas with large concentrations of liquidity. Liquidity seeking means price tends to move toward significant liquidity pools rather than randomly. Large market participants prefer executing where liquidity is abu…
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Price tends to move toward areas with large concentrations of liquidity. Liquidity seeking means price tends to move toward significant liquidity pools rather than randomly. Large market participants prefer executing where liquidity is abundant. When price encounters a large cluster of orders, it moves toward that cluster because execution is easier for market makers there.