Liquidity Cluster
A liquidity cluster is an area where a relatively large concentration of orders or potential trading liquidity is located. The term can refer to visible order book liquidity or inferred areas where orders are expected to be concentrated.
Why it matters to you
Markets often move toward areas containing substantial potential trading activity. Knowing where liquidity may be concentrated can help traders understand why certain highs, lows and price zones attract attention. But inferred liquidity is not guaranteed to exist exactly where a tool estimates it.
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