Short conversational excerpt from a YouTube video ("I Want To Show You How The Liquidity Is Being Built") in which two speakers discuss market liquidity and order-book dynamics. They describe how resting orders (volume) can cause sudden price moves when they are executed, characterizing abrupt price changes as liquidation events.
You need to look at the entire book and you need to see.
Yeah.
What all the orders that are sitting there. You know, that is also volume, you know, because. Yes, it's absolutely. This is why we have these sudden moves, because they are there doing nothing, and then all of a sudden, let us move in one of the directions. Right. Going up and you have a sudden move. You're just getting. It's just a liquidation event. That's all it is. Exactly.
Yeah. And you can back test it. Go back and look at any big move that's happened. It's happened after consolidation period, pretty much on. So it's something that it does repeat.
