Internal & External Range Liquidity
Bias made easy
A thread 🧵
External range liquidity are the swing highs and swing lows of a range.
Internal range liquidity are the Imbalances / Fair value gaps left behind within the range.
When price takes out an external range liquidity, you should anticipate a return into the range to target internal range liquidity.
Here is a textbook example.
External ⇒ Internal.
Your new external range high now becomes the highest swing high of the range after the internal range liquidity was rebalanced.
Now you should anticipate external range liquidity to be your next target.
Internal ⇒ External.
There you have it.
Internal ⇒ External ⇒ Internal ⇒ External ⇒ Repeat.
Detailed video explanation 👇
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