Liquidity

Liquidity is a certain range on the chart where regular traders hide their stop orders (stop losses). A major player uses them to open his position. Liquidity is the engine of the market. A major player gains/allocates positions at the expense of stop losses of other market participants. Suppose a market maker is going to take a position, what does he need to do? Create a zone for retail traders to put their stops and when the necessary amount of stops (liquidity) is formed, the major player will come for it. How does a major player get the crowd to put their stop losses where they want? Easily. Most people are still trading support and resistance levels so let a level form on the chart and there will be stops behind it.

The crowd who saw a touch of one range will consider this zone as a strong level and will enter at its beginning and their stops will be behind the "level".

I think the logic is clear just by looking at the two screenshots. The market participants are knocked out by the stop and the big player with a position gained.
There are dozens of tools that the big player manipulates, such as the trend line or various patterns.Liquidity is both behind equal hawks/layers and behind the normal wick. If there is liquidity, don't worry, the market will get there.

Liquidity is both behind equal hawks/layers and behind the normal wick. If there is liquidity, don't worry, the market will get there.

Frequently Asked Questions:

What interest does a big player have in beating people out with stop-losses?
That's how a big player gains his position.

What is sell-side liquidity (SSL) and buy-side liquidity (BSL)?
SSL - stops for those who are open long.
BSL - stops of those who opened shorts.

Will liquidity disappear behind the pool that the price hasn't taken off for several years?
When the price starts to approach the liquidity pool, the crowd will already start leaving their orders (stop losses) there.

What should we expect from the price when it has withdrawn the liquidity pool?

We should pay attention to the reaction. The price may not notice this pool and go further or it may turn around aggressively after a big player has gained or unloaded a position. Based on the first block I cannot fully describe how to work with the liquidity pool. But ideally, after the liquidity pool is removed, the market structure should break down.