Liquidity
The order volume available to trade at a given price. Large players seek liquidity to enter without slipping the price.
Liquidity is the 'fuel' aggressive orders consume. Liquidity-rich zones (stops, stacked limit orders) attract price like magnets: institutions fill their positions there. The heatmap makes it visible.
In depth
A large player has a problem the retail trader doesn't: their size. To buy hundreds of contracts without blowing up the price, they need a counterparty, liquidity. And the most liquidity-rich zones are predictable: below an obvious low and above an obvious high, retail stop orders pile up. Once triggered, those stops become market orders: exactly the counterparty the large player is looking for.
That's why price so often 'reaches for' an obvious level before turning the other way (see stop run): it's not random, but a mechanic where liquidity pulls price. Understanding where liquidity sits means understanding where the market has a reason to go.
On DeepCharts, the heatmap reveals passive liquidity (the big walls), but keep in mind invisible liquidity: the stops below lows and above highs, which don't show in the book. Spot a sweep of those zones followed by a clean rejection with a delta flip, that's often where the real move begins.
A cluster of stops below the low = liquidity the market will often reach for.
Placing your stop at the most obvious spot (just under the day's low). That's precisely where liquidity piles up, so where the market goes to grab it. A stop that's too 'logical' gets swept before your scenario plays out; move it beyond the liquidity zone.
Frequently asked
Why does price reach for liquidity?
Because large players need counterparty to fill orders without slippage. Zones of stops and stacked limit orders offer that volume: price is drawn there, often before turning the other way.
Are liquidity and volume the same?
No. Volume is what has already traded (the past). Liquidity is what's available to trade (the present, resting orders). The heatmap shows liquidity; the footprint shows volume.
How do you spot liquidity zones?
Visible walls appear on the heatmap. 'Hidden' liquidity (stops) is inferred from obvious chart levels: session highs and lows, prior-day extremes, round numbers.
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