@cryptotrading_insights: High vs Low Resistance Liquidity Run ICT SMC | Stop Hunt or Real Breakout? Liquidity | Smart Money Liquidity in ICT / SMC Trading In ICT (Inner Circle Trader) and SMC (Smart Money Concepts), liquidity is the fuel of the market. The concept was popularized by Michael J. Huddleston (ICT), who teaches that price moves from liquidity to liquidity โ not randomly. ๐ What is Liquidity? Liquidity = clusters of stop losses and pending orders resting above or below price. These are usually found at: Equal Highs (EQH) Equal Lows (EQL) Previous Day High (PDH) Previous Day Low (PDL) Swing Highs / Swing Lows Consolidation highs & lows Smart Money targets these areas to: Fill large positions Manipulate retail traders Create momentum after stop hunts โก Liquidity Run (Stop Hunt) A Liquidity Run happens when price aggressively moves into a liquidity pool to trigger stops and then reacts. There are two main types: ๐ด High Resistance Liquidity Run ๐ What It Means: Price runs into a liquidity pool where there is strong opposing higher timeframe structure. Example: Price raids Equal Highs But that area is inside Higher Timeframe Supply / Premium Zone Strong Order Block or Fair Value Gap is present ๐ฏ Result: Quick rejection Strong reversal Market shifts structure ๐ก Trade Idea: Wait for liquidity sweep above highs Confirm MSS (Market Structure Shift) Enter on FVG / OB mitigation Target opposite liquidity ๐ This is usually high probability reversal setup ๐ข Low Resistance Liquidity Run ๐ What It Means: Price runs into liquidity but there is little or no higher timeframe resistance. Example: Price breaks previous highs No supply zone above Strong bullish order flow ๐ฏ Result: Continuation move Expansion phase Breakout with displacement ๐ก Trade Idea: Wait for liquidity grab Enter on retracement to FVG Trade with order flow direction ๐ This is usually continuation setup ๐ง How to Identify Resistance Strength? Ask these questions: โ Is price in Premium or Discount? โ Is there HTF Order Block? โ Is there unmitigated FVG? โ Is market trending or ranging? โ Is there higher timeframe liquidity above? If many factors align โ High Resistance If little confluence โ Low Resistance ๐ Simple Example Scenario 1: EURUSD sweeps Asian High 4H Supply zone present Bearish displacement appears โ High Resistance Liquidity Run โ Sell setup Scenario 2: Gold breaks daily high No supply above Strong bullish bias โ Low Resistance Liquidity Run โ Buy continuation ๐ฅ Key Rule in ICT Price seeks liquidity first. Structure confirms direction after. Liquidity is the engine, structure is the confirmation. #ICT #SMC #Liquidity #SmartMoney #stophunt
