What Is Liquidity in Trading? Order Flow Explained and Why Retail Traders Get Trapped

April 24, 2026

EUR/USD 15-minute trading chart showing market structure, liquidity sweeps, and supply and demand zones
This article explores the importance of understanding liquidity and order flow in trading to avoid common pitfalls faced by retail traders. It explains why prices often move towards obvious levels, attracting traders while simultaneously trapping them. Key concepts include analyzing market structure, improving decision-making, and refining risk management to enhance trading performance.
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