Liquidity-Based Trading: Navigating Retail Interest and Market Maker Moves

Liquidity-based trading involves targeting price levels with high retail interest, where orders cluster at support and resistance levels. Market makers often drive prices toward these liquidity pools to capture retail orders, creating opportunities for strategic entries.

Core Strategy

Traders watch for "liquidity sweeps," where prices spike to hit stop-loss zones and then reverse as market makers capture liquidity and reposition. By following these moves, liquidity traders can anticipate reversals and capitalize on shifts triggered by retail and market maker dynamics.