Ansem breaks down why false breakouts and false breakdowns matter, as large traders can absorb aggressive buying and selling at key liquidity levels to build their positions
“When you have a market trying to choose the direction that it's trending in, when you absorb a lot of activity at key spots, it's simply bad for the people who are trying to push the price there”
“If you have this high, whatever market buys at this level, thinking this is going to be a breakout, a lot of people are absorbing all of that buy flow with their limit sells”
“For people to build larger positions, you typically need to go to the areas of most liquidity”
“The areas of most liquidity are where you're going to see a lot of market buying in whichever direction”
w/
@blknoiz06