A liquidity grab takes place specifically on the sell side of the market, which refers to the aspect of trading where sellers are looking to offload their assets.
This phenomenon signifies a noticeable break or shift
in the prevailing dynamics of the market, indicating a significant change in how buyers and sellers are interacting with one another at that moment.
Occurs when price spikes above a resistance level or equal highs, taking out stop-losses of sellers.
Institutions use this as a trap before pushing price downward.
