#usefulmaterial
🧐 What is Internal and External Liquidity in simple terms?
We all know that a position should only be opened after a liquidity withdrawal. But what to do when there are no swing withdrawals or when the price moves inside the structure? The division of liquidity into internal and external liquidity helps in this question.
➡️ Internal Liquidity - internal liquidity, which is within the boundaries of the structural range.
➡️ External Liquidity - external liquidity, which is located outside the structural range.
❗️ It is important to understand that liquidity can be not only swings, but also FVG. In this case, if there are no swings inside the structural range, we need to overlap FVG to open a position.
💪Tip:
Try to open a position only after liquidity has been withdrawn.
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