Liquidity pools

Liquidity & Stop Hunts

Not all pools are equal highs

Liquidity pools also form at round numbers like $100 or $50. The prior day's high and low work the same way, and so does an untested gap left behind by a fast move.

Bigger pool, bigger reaction

A pool built from three weeks of consolidation reacts differently than one built from a single afternoon spike. More time and more touches at a level means more resting size. Expect a sharper move once it's finally swept.

Map pools before the session, not during

Mark the obvious highs and lows on your chart before the session starts, round numbers included. Reacting in real time to a sweep you didn't see coming is how the hunt catches you instead of paying you.