Trading Lab: Reading Liquidity Pockets Before the Break

Research preview

Trading Lab Heavy activity can mark the next decision band A liquidity pocket forms when many ticks cluster around a narrow price band. It is not automatically support or resistance, but it is a place where the market has shown interest. The next question is whether price accepts that band or rejects it. Acceptance usually means price can hold near the dense area without immediately reversing. Rejection means activity appears, but price cannot sustain the level and moves away quickly. PULSE studies this behavior because the reaction after the pocket often matters more than the pocket itself. Desk note: For execution, the cleanest read comes after the first touch. If...