The money you keep or lose does not come from central banks, but rather from us individuals. We are the liquidity. And the big players in the market manipulate us as they wish.
If you cannot identify liquidity, you are liquidity. That is a very popular statement amongst traders, and the purpose is to encourage you to be more observant of liquidity sweeps.
Good and experienced traders know how to avoid liquidity sweeps, but new traders will always find themselves in a situation where the market acts in an opposite direction from the direction it is supposed to act, taking them out of the market and then continuing in the direction they expected it to go before it took them out of the market.
This happens mostly to new traders in the market. Being able to identify liquidity and not been used as liquidity is very important, so every trader as they get to understand the trading market tend to not be used as one and are most cautious of that. Liquidity sweep is one that will take you out quickly by hitting your SL and then come back and continue in your direction. If you have a minute account, you wound most definitely already liquidated before the market will begin to go your direction which is painful and discouraging.
Knowing where liquidity is and dodging it is very important and one of the characteristics of a good trader. Market always I to where liquidity is to sweep them all before they continue in the direction that they are to for the actual trend of the market. Liquidity is just like pull backs to take along the money they’ve left behind. So don’t be the liquidity to be swept but enter the market along in the opposite directing after liquidity is swept.