#firstdealofthenewyearFateema Liquidity Zones in Forex Trading A liquidity zone is a price area on a chart where there is a high concentration of buy and sell orders, leading to increased trading volume. These zones often act as support and resistance levels, where price either consolidates or makes sharp moves. --- Characteristics of Liquidity Zones: ✅ High Trading Volume: Large institutional orders (banks, hedge funds) are placed here. ✅ Price Sensitivity: Price tends to react strongly, either bouncing off or breaking through.