Liquidity Pools and Order Blocks

Buy-side liquidity sits above swing highs — breakout traders' stops, short stops, buy stops. Sell-side liquidity sits below swing lows. Manual traders mark these before price arrives.

A sweep (run on liquidity) pierces the level, triggers orders, then price reverses or accelerates through. The wick through equal highs with bearish close is classic sell-side exhaustion above market before drop — or continuation if structure supports breakout.

Order block (OB): the last down-close candle before a bullish impulse (bullish OB) or last up-close before bearish impulse (bearish OB). Idea: unfilled institutional interest remains; price may revisit for reaction.

Not every opposing candle is a valid OB. Filter: must precede a strong displacement move that broke structure. Weak moves produce weak blocks.

Combine: sweep of sell-side liquidity into bullish OB in discount zone during London/NY — high-confluence manual long scenario when confirmed.