Know Your Trading Edge

Liquidity Pools
Liquidity pools are areas where we can assume clusters of limit orders and/or stops reside.
Pending limit orders are, by definition - liquidity! They are triggered as price trades through a particular area.

From an institutional perspective - if price trades through X:
Buy orders hit the market = potential short liquidity.
Sell orders hit the market = potential long liquidity.

This brings us to the next question: How do institutions identify liquidity pools?

The answer: Where does the average retail trader place their stop?
Below a swing low or a range low
Above a swing high or a range high

A sign that you are becoming mature trader
1. You stop searching for 100% accurate no loss strategies
2. You are focusing more on learning than profits
3. You have found answers to Why do you want to trade and What you want from trading
4. You are focusing on long term consistency.

Good trading is not about being right every time. you need to think of the long run and ignore the outcome of individual trades.

Working because You Want to and not because You have to is real Wealth.
Don't confuse money with wealth