How to use Retail Liquidity #trading #shorts

4 May 2023 · 1 min
0:40

In this short, the creator explains that apparent price manipulation is often market makers extracting retail liquidity. They argue that market makers move the price to collect liquidity (the "fuel") before reversing direction. Using a Ferrari analogy, the speaker describes how the market needs liquidity to move up or down: to go up, the price first moves down to gather liquidity, then propels upward; similarly, to go down, the market first moves up to gather liquidity before descending. The core claim is that market makers deliberately shift prices to capture retail liquidity and then reverse the move.

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