Chart-reading quiz: EURUSD 4H

Where the pullback is really heading

The case: EURUSD, 4H, a fresh situation. Price pulls back from the high. At first glance there are two obvious targets below (#1 and #2). But the real liquidity is deeper.

1. #1 — surface liquidity. Equal lows, fresh stops of those who went long. It will almost certainly be taken, but it is an intermediate stop, not the target.
2. #2 is the IDM — that is, a trap. The indicator highlights the IDM only where liquidity has already been swept before. Behind the level there is no "large pool of stops" but a lure that looks like a target. Most will pick exactly it, because "bigger = more important". That is the essence of the trap.
3. The real target is the 1D FVG. The unfilled daily imbalance is the zone the whole structure above exists for. The IDM at #2 is the hint that price is heading deeper.

Logic: liquidity #1 → IDM trap (#2) → the real target in the 1D FVG. In the moment price can turn from any level — that is the market. But the hierarchy of targets is this: the deeper the zone, the higher its priority if an IDM stands above it.