Markets often move toward areas where many stop losses are located. These areas are usually: • Above previous highs • Below previous lows Price may sweep these levels before reversing direction. Understanding liquidity helps traders avoid false breakouts and find better entries.

One of the most important concepts in trading is market structure. Uptrend:Higher highs and higher lows. Downtrend:Lower highs and lower lows. Always try to trade in the direction of the trend instead of fighting the market. For a full explanation, check Module 2 – NASDAQ Trading Strategy in the Classroom.