How to Read the Market Through Liquidity: A Practical Guide for Prop Traders
Liquidity is the hidden force behind every meaningful price move in the market. While many traders rely on indicators that react after the fact, liquidity-based analysis explains why price moves, where orders are likely resting, and how professional participants interact with the market. For traders pursuing a Quant Funded evaluation, understanding liquidity can be the difference between repeated stop-outs and consistent, controlled performance. By learning to read liquidity zones, wait for confirmation, and align entries with real supply and demand, traders can improve timing, reduce drawdowns, and trade with the discipline required to pass prop firm challenges.