Liquidity gathers around obvious levels: recent highs and lows, the day's open and round numbers like 1.1000.
These are the prices where many traders place orders, so the order book is deepest there, and price often reacts when it arrives.
Most traders place stop-losses just beyond obvious levels: below a recent low if they are long, above a recent high if they are short. That creates pools of orders waiting to trigger.
A sweep happens when price briefly breaks a level, triggers the stops beyond it and then reverses sharply. It often means large orders used that liquidity to get filled, not that the trend changed.
If your stop sits exactly where everyone else's does, it is more likely to be hit by a short sweep before the real move.
Place stops where your idea is proven wrong, with a small buffer, rather than at the most obvious price.
Structure shows direction. Liquidity shows where price may travel next.
