Three Points to Identify Liquidity That's Understandable for Beginners
In ICT,
It is often said that "Liquidity is important."
However,
"Highs and lows are everywhere, but are they all Liquidity?"
"Can we count this as Liquidity?"
"It feels Liquidity-ish, but I’m not confident..."
A lot of people must have these worries, right?
In reality, I was the same. There were too many highs and lows,
"I can't possibly judge this!!"
There was a time when I felt that way.
First, what I want everyone to know is
that there is no absolute correct answer in FX.
The same pattern does not appear every time. Markets are diverse in countless ways.
So,
"Is this Liquidity?"
thinking in terms of Yes or No itself is wrong.
What you really should consider is,
"How strong is this Liquidity?"
"How influential does it seem to be?"
In other words,
"I’m not sure whether to treat this as Liquidity..."
When that doubt arises,