Liquidity: The Trap That Powers the Market“The market doesn’t move to reward you.
It moves to hunt those who move without awareness.”
Every beginner asks: “Why did price stop me out before going in my direction?”
The answer is usually one word: Liquidity .
What is Liquidity?
Liquidity is simply where orders are waiting:
Buy stops above a recent high
Sell stops below a recent low
Pending orders around round numbers (like 3400, 3350 in Gold)
These areas are pools of money.
The market needs these pools to fill large institutional orders.
Why Traders Get Trapped
Price breaks above a high → retail traders buy the breakout.
Price dips below a low → retail traders sell the breakdown.
But instead of continuing, price often snaps back .
Why? Because the market just collected those stops — the liquidity it needed — before reversing.
This is why beginners often say:
“Every time I enter, the market goes the other way.”
Sweep vs Grab
Sweep = Price pushes above/below a key level to collect stops. This alone doesn’t mean reversal.
Grab = After the sweep, price rejects and shifts structure (ChoCH/BOS). This confirms intent and often leads to the true move.
Practical Example (Gold)
Suppose Gold makes a high at 3395.
Many traders place buy stops above 3395, expecting a breakout.
Price pushes to 3397 (this is the sweep ), then falls back under 3395.
If structure shifts bearish after that, it becomes a liquidity grab .
The smart entry isn’t the breakout.
It’s after the sweep, when the grab confirms direction.
Trading isn’t about being the first one in.
It’s about being the last one trapped.
Patience protects you from becoming liquidity yourself.
📘 Shared by @ChartIsMirror
