Most traders hear βliquidityβ and immediately start marking highs and lowsβ¦
But thatβs just the surface.
Here are the most common liquidity mistakes I used to make β and what changed everything for me π§΅π
Mistake 1: Thinking every high/low = liquidity
Not every wick is a liquidity .
Liquidity forms where retail stops accumulate β usually at Swing Lows below/above retail entry models.
First Low Below Support
First High Above Resistance
The "Safe low/high of the MS"
The Popping Low/High of the trend line
All Swing Areas!
Context matters.
Mistake 2: Trading the sweep alone
I used to long/short the moment a high or low got swept.
Bad idea.
You need confirmation after the sweep:
Displacement - Retail Entering the Positions Against You - Making more Liquidity for you to hunt.
PD Arrays - Great Confirmation also. ( Retail Entering against you is better)
Entering a Trade without checking at least one of these = gambling.