There are only 2 main types of Liquidity in the market. • Internal range liquidity • External range liquidity

Internal range liquidity refers to any POI or PD Array within the dealing range. This includes regular highs and lows, but also FVG, OB, and the Midpoint of the Range. Although it's not technically "liquidity", it's much easier to simplify it this way.

External range liquidity is the main high and low that forms the range. This can only be 1 buyside liquidity, and 1 sellside liquidity. It's that simple.

So why is this concept very powerful? Here are 3 reasons:

There are only 2 ways price can move. From internal to external range liquidity... Or from external to internal range liquidity. All price moves are based on this concept.

Let me show you some examples so you can fully understand this 👇

#1 Price went from Internal Range Liquidity (IRL) to External Range Liquidity (ERL) The IRL was a fair value gap in this example.

#2 Price went from IRL to ERL again. But this time, the IRL was buyside liquidity within the range.

#3 Bearish example, and the IRL was a fair value gap. Get the idea now?

How can you use this? You can use this to frame a bias & narrative on the HTF. This is one of the easiest ways to find your bias, and be aligned with the market. Then, drop down to the LTF to find an A+ entry. It's simple, but not easy

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Now that you've learned this concept, you don't want to forget it. So I made an entire cheatsheet so you can master Liquidity. Download it for free now 👇 https://www.simpletraders.io/l...

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