Shortly about Liquidity Pools

02/08/2021 Yorgwarez

In previous post I was writing about Liquidity on Markets and we have roughly touched topic of Liquidity Pools.  Those are areas where a lot of Passive Orders are awaiting execution. Can be quickly identified on Order flow charts, however I would like to show you also method of marking them on Price Chart.

On standard price chart, we can expect Liquidity Pools to be presented in areas such as:

  • Range of Long (aka Momentum) candles
  • above/below Daily High/Low
  • above/below Weekly High/Low
  • Double Tops or Double Bottoms
  • general S/R levels (obvious ones, which can be spotted straight ahead when looking on price chart)

These areas brings a lot of attention and even without order flow – you can expect in those zones many resting/passive orders awaiting execution. Last but not least, also this is where majority of Traders put their stop market orders (stop losses) anticipating a breakout.

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Intraday Trader, trading mainly on Dax, S&P500 and Gold. Passionate of new technologies and ex-developer. Currently creating software after hours in order to improve Trading and perform automatic analysis on as big scale as possible. Not trying to predict future, however always having plan and possible scenarios to play.

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