Institutional Order Flow

Do you want to go swimming in the Liquidity Pools, deep diving for those bargain basement deals? The Market Makers (Exchange operators and their insider circle of people) can see the entire order book, they can see exactly where the clusters of stop loss orders are located. Using techniques such as spoofing and wash trading they can drive the price to where these stop loss orders are located. They can also take advantage when certain conditions arise such as thin order books and low volume to cheaply drive the price to the desired location. Big range Low volume candles printed on the chart at this time are known as Liquidity Voids. Once the stop loss cluster (Liquidity Pool) price has been hit this provides liquidity for the insiders to fill their buy or sell orders depending on which direction they are about to push the market (or which direction they know the market is going to move due to insider knowledge). With this knowledge you can hunt for likely Liquidity Pool locations on your charts and enter your trades at these liquidity pools rather than being whale food yourself.