Visualization of the Bearish Liquidity Grab
1. Before the Liquidity Grab
- Equal highs at 1.2100.
- Price consolidates below the supply zone, enticing traders to short early or wait for a breakout.
2. During the Liquidity Grab
- Price spikes to 1.2120, breaching equal highs and triggering stop-loss orders.
- Retail traders are caught off-guard as the price momentarily appears bullish.
3. After the Liquidity Grab
- Price reverses sharply, forming a bearish engulfing candle.
- The market resumes its downward trend, leaving retail traders trapped in losing positions.