LESSON 3
 

HOW MONEY ACTUALLY MOVES IN THE MARKET

 

Lesson Overview
 

This lesson introduces one of the most important concepts in trading: Liquidity.

Most beginners believe price moves randomly. In reality, price often moves toward areas where orders are concentrated.

Understanding liquidity helps explain:

• Why highs and lows get swept • Why false breakouts happen • Why price reverses from certain areas • Why markets move with apparent purpose

This lesson is your first introduction to how professional traders interpret market movement.

Key Concepts Covered
 

• What liquidity is • Why institutions need liquidity • Equal highs and equal lows • Stop hunts and liquidity sweeps • Why price targets certain zones

What You Should Take Away
 

The market is not simply moving randomly. Price is constantly searching for liquidity and efficiency.

Workbook Focus
 

As you review the charts in the workbook, focus on:

• Identifying where liquidity rests • Understanding why price reacts around key areas • Seeing the relationship between behaviour and movement