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Trade the Matrix - Trading the Clearout

The Friendly Bear - Verified Trader

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How to Trade the Clear Out Price Structure

Clear out is often common in very liquid markets such as FX or large cap equities that trade on strong volume. Price tends to move from structure to structure, squeezing one side of the market participants most of the time. Liquidation events are constant processes that move markets intraday. The larger the liquidity zone buildup, the more likely it is that such zone will be targeted by the market maker.

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