Core Concepts
Sell-Side Liquidity (SSL)
Orders resting below a price level — sell stops, breakdown orders, long stop losses
Sell-side liquidity refers to the collection of orders resting below a price level. This includes sell stop orders, breakdown entries, and stop losses from long positions. The market targets these clusters to generate the volume needed for larger moves. In a bearish trend, sell-side liquidity below swing lows is the external range liquidity target during impulsive phases.
✓How to Recognize
- •Orders cluster below swing lows and support levels
- •Includes sell stops, breakdown orders, and long stop losses
- •Targeted during bearish impulsive phases
- •Sweeps below lows fuel upside reversals or continuation moves
⚡How to Avoid
- →Entering breakdowns without confirming whether liquidity is being swept
- →Placing stops at obvious levels where SSL clusters
- →Ignoring that a sweep of SSL may reverse immediately
- →Confusing an SSL sweep with a genuine breakdown