Disliked{quote} Thanks for the input! How does low liquidity mean nice moves for scalping? i am a scalper and i presume more liquidity means markets move faster? Maybe i got it switched aroundIgnored
Low liquidity means price cannot expand away from core density, therefore if you trade against a breakout, it will have no follow through orders to continue so it collapses.
That’s easy money.
It’s therefore a high probability trade to fade the market during low liquidity periods but potentially a higher risk trade to consider if the volume is increasing markedly. Often I see a high volume 1 minute candle appear on a chart of about 5 times the average density- this can be the start of the next big move.
Trading thin liquidity at the boundary of the charts
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