Definition

Liquidity

Resting limit orders waiting to be filled. Not static — actively managed by participants in real time.

Full Explanation

Liquidity is what price moves through, not what it bounces off. It is the collection of limit orders sitting at various prices, placed by participants willing to buy or sell at those specific levels but not yet. Deep liquidity at a price means a large amount of opposing aggression is required before price relocates. Thin liquidity means even modest aggression can move price. Liquidity is never fixed — participants add, cancel, and modify their orders continuously, which is why a level that held before may not hold again even though the chart looks the same.

In the Book 1 chapter

Chapter 2 · The Mechanics

Liquidity and Aggression

Every single trade has a buyer and a seller. That’s not an insight — it’s just math. For any transaction to happen, someone has to buy and someone has to sell. Which means that when you hear “buyers are in control right now” or “sellers are pushing price down,” you should pause for a second, because those phrases are telling you less than they sound like they are.

From the Blog 3 posts

Absorption: When Aggression Arrives and Nothing Happens

Absorption is the mechanical event where market orders meet enough resting liquidity and price fails to move—understanding it changes how you read every consolidation.

Why the Author Is Not the Authority

Trading education often becomes a personality cult. TTM reframes the guru trap, moving the authority from the author to the market's mechanical reality.

Why "Buyers vs. Sellers" Is the Wrong Frame

Every transaction has both a buyer and a seller. That's not insight — it's arithmetic. The question that actually matters is different, and until you're asking it, you're working with the wrong map.