Sell-side liquidity (SSL)
Also called SSL. What it means, how it looks on a gold (XAUUSD) chart, and the mistake most traders make with it.
Sell-side liquidity: Sell-side liquidity is the pool of sell orders below swing lows and equal lows: stop losses of buyers and sell-stop breakout entries.
Sell-side liquidity on a gold chart
If the Asian session low on gold is $4,092, buyers who entered during Asia often have stops just below it. When London opens and gold drops to $4,088 before rallying, that drop took the sell-side liquidity.
How traders use it
In a bearish bias, sell-side liquidity is the target for shorts. In a bullish bias, a sweep of it, followed by a market structure shift, is a classic buy setup.
Common mistake
Buying the first touch of the low. The level is a target before it is support; many traders wait for the sweep and the shift.
Questions
What does sell-side liquidity mean in trading?
Sell-side liquidity is the pool of sell orders below swing lows and equal lows: stop losses of buyers and sell-stop breakout entries.
How is sell-side liquidity used on gold (XAUUSD)?
In a bearish bias, sell-side liquidity is the target for shorts. In a bullish bias, a sweep of it, followed by a market structure shift, is a classic buy setup.
Educational content, not financial advice. Every concept here is a probability, not a guarantee.
Free daily gold key levels every weekday at 05:30 GMT, and every Tradedge Pulse trade on the public record.