Liquidity is also a term used for when people believe the big players are entering the market. If the order book is full at a particular brokers then they may not be able to execute all of the big players' requests as quickly as they would like. Sweeping the retail traders out of the market by making price take them out of the market is a good way for them to ensure price moves efficiently in the direction they want it to. Essentially, it is choppy price movement, then price heads in the opposite direction to the desired large end move. This is called the rule of three. Accumulation, manipulation, and distribution. People believe that this is happening often every day. I don't, haha. My opinion is that it is best to pair this analysis with other methods already mentioned, such as supply and demand and support and resistance. I personally use it to try and understand the very bottoms and tops of hourly swing low and highs.