What is the target mentioned in the four-step process?

• A. Previous liquidity
• B. Daily high
• C. New all-time high
• D. No target

Answer: (A)

The target in this four-step process is previous liquidity. In this approach, the idea is that markets tend to move to zones where orders were resting from before—areas of prior liquidity such as the last swing highs and lows where stops and resting orders accumulate. When price revisits these zones, liquidity is swept and the move often resumes in the intended direction, making that prior liquidity a natural and testable objective for the target.

This isn't about chasing a daily high or pushing for an all‑time high. Those levels are dynamic and driven by different pressures, whereas previous liquidity provides a concrete, historically tested area where price is likely to react and continue. Not having a target would leave the trade without a defined plan for where to take profits, which is essential for disciplined trading.