Buy-side and Sell-side liquidity pools
Filter in the app: Liquidity above highs · Liquidity below lows
Liquidity pools are areas where resting orders are assumed to cluster. Buy-side liquidity pools sit above swing highs. Sell-side liquidity pools sit below swing lows. People search for liquidity pools when they want a name for those clusters, not a map of guaranteed targets. In PatternLabs the buttons are Liquidity above highs and Liquidity below lows. This page explains buy-side and sell-side liquidity pools and how a scan uses that filter. It is not financial advice, and it does not say price will go up into a pool or reverse when it gets there.
What liquidity pools show
A single high is just a high. Several swing highs packed into a small range are what traders call a buy-side liquidity pool, because stops and breakout orders are often imagined above that cluster. Several swing lows packed together are called a sell-side liquidity pool for the same reason, underneath the lows. The buttons look for those clustered swings on the timeframe you select. In the app they are Liquidity above highs and Liquidity below lows, not a drawing tool you have to label by hand.
What liquidity pools do not say
A liquidity pool is not a price magnet with a deadline. Price can ignore a cluster, trade through it, or stop far away. Reaching a buy-side liquidity pool does not mean a short is due. Reaching a sell-side liquidity pool does not mean a long is due. PatternLabs does not place trades. The filter lists pairs where buy-side or sell-side liquidity pools match the scan. The list describes the chart condition. It does not describe an outcome.
How to look for liquidity pools in PatternLabs
Open PatternLabs, choose a market, and add Liquidity above highs or Liquidity below lows to the filter chain. Pick the timeframe whose swings you want to cluster. The scan covers the crypto spot and forex pairs in the app and returns the pairs where that condition matches. Open a match and see which highs or lows were grouped. You can combine this with Liquidity grab above highs, Liquidity grab below lows, BOS, or Volume, because those buttons already exist.
How to read a match
Count the swings in the cluster and notice how clean they are. A tight set of equal highs is a clearer liquidity pool than three unrelated peaks far apart. Then ask whether price is approaching that pool or has already traded through it. PatternLabs shows the match so you can answer that from the chart. This explanation of liquidity pools does not tell you to buy, sell, or wait for a reversal.