Liquidity Zone (LZ)

Typically, these are zones located slightly above or below Support or Resistance levels where the price has briefly gone beyond the level before closing near or at the level.

In lower time frames, the price might momentarily move above or below the horizontal levels but encounters resistance to continue in that direction. Often, the price retraces and tries to break the level again, only succeeding when all the buyers or sellers in that zone have been exhausted.

Liquidity Zone