Liquidity I - Introduction to the Rollover

What we want to figure out now is when liquidity is considered more dense or less dense. Which areas of your chart are low/high resistance. This isn’t the same as Low Traffic Areas or High Traffic Areas which I refer to, so just sit tight.

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Theory

The importance is on how price moves after it has taken out liquidity. If the market makes clear trend after, let's say in the form of higher highs and higher lows, we can conclude that it won’t be likely that price will drop all the way down below that low to take out the liquidity lying underneath it.

There will be lots of resistance, bullish PDA’s, more on that soon.

Here is an example;