UNDERSTAND LIQUIDITY BEFORE YOU TRADE INDICES

Liquidity is one of the most important concepts to understand when trading NAS100, US30, and US500.

Buy-side liquidity generally rests above highs, while sell-side liquidity generally rests below lows. Equal highs, equal lows, previous-day highs, and previous-day lows can all become important reference points.

But remember, a liquidity level is not a guaranteed reversal point.

Price can sweep a high and continue higher. It can sweep a low and continue lower.

The real skill is understanding what price does after reaching that level.