Trade the Matrix - Trading the Clearout
The Friendly Bear - Verified Trader
The Importance of Liquidity in Trading
The majority of targeted clear outs will happen around structures where the price is constantly bouncing from demand support level or resistance supply level for multiple times before it actually breaches it thus traders should only focus on such structures to identify and trade clear outs. To understand why the market maker might trigger liquidation clear out intentionally, it is important to understand above concept of fuel zones. This is not a conspiracy theory of any sort. It is the means of how larger players might want to use high liquidity zones to put their own large orders in without having too much impact on the price. But that is not always the case as some market making activity is actually created to push the price both sides of the coin are present
