Why it matters
Why sell-side liquidity matters to traders
Obvious lows can become active areas because many participants make decisions around them. When price trades below, triggered orders may accelerate the move or create the activity needed for an opposing participant to transact.
Practical use
How traders use it
Focus on meaningful swing lows, equal lows and range boundaries, then evaluate what price does after the level trades. Acceptance below the low and immediate rejection are very different pieces of information.
Common mistake
What to avoid
The existence of a visible low does not prove how many orders sit beneath it. The concept is useful as a behavioural hypothesis, but exact order concentration requires data the candle chart usually does not provide.
Use the concept, not the label
Trading terminology is useful only when it improves a repeatable process. Define the concept clearly, test how you use it, pair it with risk management, and avoid turning chart language into certainty about what the market must do next.