Regarding types of liquidity, specifically stop-loss liquidity, we observe that retail traders typically position their stop orders in the following areas:

* Above equal highs

* Below equal lows

* Above resistance levels

* Below support levels

Institutional participants often maneuver prices to these locations to achieve several objectives:

* Triggering stop orders

* Generating market orders

* Facilitating the fulfillment of substantial positions

This strategic market activity is commonly referred to as:

* A liquidity sweep

* A stop hunt

* Inducement