ES Seeks Liquidity Before It Moves
If you're in the middle -> You're probably getting chopped up
What Is “Seeking Liquidity” in ES?
Every session, the ES is looking for liquidity.
That means price is drawn to levels where the most orders are stacked—think prior day’s highs and lows, multi-tested support and resistance, and anywhere stops are likely hiding. The big players need size, and they can’t fill up without triggering a wave of orders from the rest of the market. This is the engine behind those sharp flushes and quick reversals you see on your chart.
Here’s a quick example:
How Does ES Seek Liquidity?
Here’s the pattern you’ll see over and over:
Flush Below Key Levels: Price slices through a well-watched low or high. Stops get run. Liquidity pours in.
Fast Reclaim: Once the stops are triggered, price finds a critical support, snaps back above (or below) the level. The move is fast and often traps late shorts or longs.
Trend Unleashed: With liquidity absorbed, ES is free to move. That’s when you see the real directional push.
Example:
Let’s say 5603 has been support all morning. ES dips below, sweeps the stops, then rips right back above. That’s your cue—the market just grabbed what it needed. Now it’s ready for the next leg.
Why Does This Matter?
Institutions Need Size: The big fish can’t just buy or sell at will. They need liquidity, and they know where the stops are.
Market Structure Is Everything: The ES isn’t random. It’s a game of levels, liquidity, and psychology. Price is always hunting where the orders are thickest.
Retail Psychology: Most traders put stops just beyond obvious levels. The market knows it—and exploits it.
How Do We Trade It?
Don’t Chase the First Move: Wait for the sweep. Let price run the stops, then look for the reclaim.
Map Your Levels: Every morning, I post the key zones. Know them. Watch how price reacts when they’re tested. You can find them here —> https://www.esdaily.com/subscribe
Process Over Prediction: We’re not in the business of guessing tops and bottoms. We’re in the business of reacting to what the tape gives us. Document your trades, stick to your plan, and let the market come to you
Bottom Line
The ES is a liquidity machine.
If you’re getting chopped up at the edges, you’re probably trading where the market wants you to.
Flip the script—wait for the sweep, watch for the reclaim, and trade with the flow. That’s how you stay on the right side of the move.
See you in the next session—plan your levels, trade your plan
— PriceTrader