Other important liquidity zones include:
- Stop Hunts: When price triggers stop-loss orders, creating a liquidity vacuum.
- Key Psychological Levels: Round numbers like 1.2000 or 1.0000 can attract traders’ attention and lead to liquidity buildup.
- Volume Clusters: Areas where there was high trading volume, signaling strong interest and likely liquidity zones.
These levels are crucial for understanding market movements and anticipating where price may be drawn in the future. Understanding these patterns has significantly improved my trading strategies.