WHAT IS EXTERNAL LIQUIDITY ?

External LQ is the liquidity that will be resting on previous highs or lows ( these highs and lows are also used to define range ) .

WHAT IS INTERNAL LIQUIDITY ?

Internal LQ is the liquidity inside the defined range ( External LQ ) , this could be in any form of any institutional reference that we can use as an entry such as Order block , Fair-Value Gaps , Volume Imbalance , and more .

External LQ can act as a DOL ( Draw on liquidity )

Price moves from External range LQ to Internal range LQ and back to External range LQ .