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Buy-Side Liquidity (BSL)

The pool of buy stops resting above obvious highs, which liquidity-based traders treat as a draw on price.

What it is

Above every clean swing high sit two kinds of buy orders: breakout entries and shorts' stop-losses. Together they form buy-side liquidity. Price is drawn to these pools because that's where large sellers can fill size into ready buyers.

Why it matters

Equal highs are a common draw on price. Treating them as a level to take profit into, rather than a breakout to chase, keeps your plan in line with how liquidity-based models read the chart.

NQ example ILLUSTRATION

Two NQ session highs print within 3 points of each other. Price grinds up, spikes 10 points through both, then collapses. The equal highs were the draw, and the 'breakout' was the exit, not the entry.

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