
Liquidity Distribution and Stop Clustering in Modern Markets
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Liquidity tends to cluster around:
prior highs/lows
consolidation edges
obvious technical levels
These clusters form because traders aggregate risk in predictable areas.
When volatility expands, these zones are cleared in sequences rather than randomly. This suggests liquidity is not evenly distributed but structured in layers.
The implication:
Markets do not move randomly — they move through structured liquidity removal.
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