Internal Liquidity vs External Liquidity – Know the Difference

Understanding liquidity helps traders build better market narratives.

External liquidity generally refers to liquidity resting beyond significant range highs and lows.

Internal liquidity refers to liquidity within the established range.

Price may move between internal and external liquidity depending on market conditions.

For example, price might take internal liquidity before continuing towards an external swing high.

Understanding this relationship can improve trade planning.

Which do you focus on more: internal or external liquidity?