Liquidity is a fundamental concept in trading, referring to areas in the market where institutional orders accumulate. Large financial institutions, such as banks and hedge funds, place their orders at strategic price levels where retail traders typically set their stop losses. These liquidity zones act as magnets, attracting price movements before major reversals or trend continuations. Scalping on the 15-minute time frame with a liquiditybased approach involves identifying and leveraging these liquidity zones for high-probability trades. Unlike traditional retail strategies that rely on support and resistance, this method focuses on how smart money manipulates price to trigger liquidity grabs before executing real market moves

Why Trade Liquidity Zones?

Many retail traders fall into the trap of buying at resistance or selling at support, only to see price quickly reverse against them. This happens because institutions engineer liquidity hunts— commonly referred to as stop-hunts or liquidity grabs—to clear out weak positions before making a significant move. By understanding where liquidity is trapped, traders can align their entries with institutional order flow, improving accuracy and minimizing risk. The 15-minute time frame is particularly effective for scalping because it provides a balance between signal clarity and trade frequency, allowing for multiple opportunities within a single trading session

Key Components of Liquidity-Based Scalping

Liquidity Zones: Regions where stop-loss orders and pending orders tend to accumulate, which includes locations such as equal highs and equal lows, as well as significant trendline liquidity and various fair value gaps (FVGs). These areas can often serve as key points of interest for traders, as they may indicate potential market reversals or significant price levels where buying and selling pressure is concentrated, leading to important liquidity zones in the market.