Liquidity in Forex
A clear definition of Liquidity, with practical context for reading markets and making better trading decisions.
Definition
In price-action language, liquidity is the cluster of orders and stops around obvious highs, lows, and equal levels. It can attract price before the next move.
Practical forex example
Equal highs above a range may hold buy stops that price can test.
Why Liquidity matters
Understanding Liquidity helps traders interpret market information, plan decisions, and manage risk with more context.
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