Liquidity: where the market actually goes
Price does not move to 'support' and 'resistance'. It moves to where the orders are. Understanding this is the whole foundation of the method behind every signal on the record.
What liquidity means here
Stop-losses cluster at obvious places: just above the session high, just below the previous day's low, at equal highs that 'everyone' can see. Those clustered stops are buy or sell orders waiting to be executed. Large participants need that volume to fill their positions, so price is drawn to those pools before it does anything else.
The sweep
A liquidity sweep is price pushing just past such a level — triggering the stops — then reversing. On a chart it looks like a wick beyond the high with a close back inside. That wick is the moment the pool got taken. Our signals are never taken at the level; they are taken after the sweep, which is why the reason line so often begins with 'after Asian-high sweep' or 'after PDL taken'.
The pools we watch on gold
- Asian session high and low (typically 00:00–08:00 MT5 time) — the most reliable London target.
- Previous day high/low (PDH/PDL).
- Equal highs/lows — two or more touches at the same price, a magnet.
- Week open and previous week high/low for swing entries.
Why we wait
Entering at the level means being the liquidity. Entering after the sweep means trading with the participants who took it. The stop then sits beyond the wick — a place price has already rejected — which is why our stops are structural, not round numbers, and why 'do not widen it' is a rule, not advice.
Published 01 Sep 2026 · Updated 01 Sep 2026