trading isn't just about buying low and selling high it's about understanding the blueprints of the moves taking place within the market and how many times have you been in a long or a short position and price trades into your stop- loss and then immediately goes to your take profit while the market makers aren't hunting your stops you simply don't understand liquidity and in this video I'm going to show you how liquidity Works using my blueprint model and I'm going to show you how simple it really is and my blueprint model isn't just another strategy it's the complete framework that you need so if price does this then you'll do that if price doesn't do that then you don't do this and that's exactly what all of you need and with that being said with my model you're not chasing moves you're anticipating when moves are going to form but without further Ado let's get into the video and let me show you where liquidity rest within the market so we are going to go over three forms of liquidity and the first one that I'm going to write down is dealing range liquidity and it ties together with my model the first one that I've wrote down is dealing range liquidity and how exactly does this form with in the market well the market forms swing highs and swing lows and this is what creates a dealing range so you can see right here this is where price is trading and then we trade lower and then we start to trade higher so this is exactly where we have a dealing range forms we have a low this is going to consist of a swing low and then we have a high so this is going to consist of a swing High and a swing low and this is exactly where we're going to find our liquidity pool so we're going to have buy side liquidity above this high and we're going to have sell side liquidity below this low and this is one form of liquidity that we will be utilizing within the market so three candles form a swing high so you can see 1 2 3 these three candles form a swing high and this is exactly where the liquidity is going to rest within this fractal so over here this is where a swing high is going to form and below this low this is where a swing low is going to form and basically it's reversed with three candles and that's how dealing range liquidity is formed where price will trade take out one side of the range so in this fractor we take out the buy side liquidity where I've ticked once we take out the buy side liquidity price will break down and trade into the sell side liquidity so dealing range liquidity is very simple you're looking at swing highs and swing lows to form a range and then you're looking for liquidity above and below the range that has formed so we've gone over the first form of liquidity which was dealing range liquidity now let's move on to internal range liquidity so there is different forms of internal range liquidity however to keep things simple I'm going to go over the one which is closest to dealing range liquidity so everything makes sense and it is simple so internal range liquidity you can basically think of it as a range within a range so you can see we have a Range High right here and we have a range low so this is known as external liquidity we have external liquidity above here which is buy side liquidity and sell side liquidity below this low and everything within this this is an internal range so you can see we have a high and we have a low so this is your internal range liquidity pool and how does this become high probability and how does it become high probability to trade well you can see this is where price is trading at the midpoint this is where you don't want to do anything this is low probability and if price breaks down lower and takes out the internal range liquidity low and the sell side liquidity low of the external range this is exactly where you look for your change in the state of delivery for price to break down and start trading higher and trade into the inter internal Range High and the buy side liquidity at the external range and how does this become internal range liquidity well you can see we have a high and a low everything within this is internal range because we're failing to take out external liquidity so we make a most recent high so this most recent high that was made price breaks down lower And Trades back within the range so then we make a most recent low and then price continues to trade within this range so this becomes the internal range liquidity High and and this becomes the internal range liquidity low and all you do now is wait for price to take out one side of this range and that is internal range liquidity and don't worry we are going to go over some chart examples as well but let's move on to failure swings which are another form of liquidity so this is what you need to understand for failure swings once you have a range so this can be a dealing range low and then price starts to trade higher and then we make a dealing Range High so once you make this dealing range you need to identify it so you know you have have sell side liquidity below this low and you know buy side liquidity rests Above This high so if price takes out the buy side first you're looking for a breakdown lower however how do you know liquidity actually rests within here well this is where failure swings come into play so you can see this low right here that I've just uh made this arrow on and this one right here and this one right here these are all failure swings and what you need to understand is they hold liquidity so this low fails to go below this low right here same with this low same with this low and same with this low so all of these are failure swings and they have very low resistance because there's no PD arrays that are going to act as resistance to hold price up and for example if we do trade higher take out the buy side liquidity start to break down change the state delivery all of these lows right here they are very low resistance and once we see a selling setup this is where price is going to freefall and trade into the liquidity pool which was the failure swings and then trade into the opposing end of the range which was the sell side liquidity so we've gone over three forms of liquidity dealing range liquidity internal range liquidity and then how failure swings act as liquidity within a range so now let's go over some chart examples with my blueprint model and how we can identify liquidity with this understanding okay I'm on the 5 minute chart on the NASDAQ and I'm going to go over all three of the liquidity pools within one fractal and going over my blueprint model so first things first for my blueprint model we have to wait for a Time based liquidity hunt so we are waiting for the 930 open so let me map out 930 we mapped out the 930 open and immediately from this fractal what can you see well you can see we have a range low and we have a range high so this is our external range liquidity pool and this is the high of the dealing range and this is the low of the dealing range so we know buy sides above here and sell sides below here what is the next thing that we can identify well we can identify an internal range liquidity pool so this was the most recent low that was made within the fractal and this was the most recent high that was made and price stayed within this area so we can see we have the external range liquidity which is the dealing Range High and the low and this is the internal range liquidity low and high all we do now is waits for price to take out one side of this range and wonderful as you can see price trades higher at 930 takes out the buy side liquidity Above This high and we trade above the internal range liquidity high as well so we taken out the buy side liquidity what can you see now well I can see failure swings we have this low that failed to go below this low and this low right here and all of these lows right here so these are all failure swings and the whole liquidity within the market not only that we have the internal range liquidity low and the external range liquidity low of the dealing range so we know that price wants to reach lower how do we confirm that price wants to reach lower from here so this is very simple we wait for a change in the state delivery so one two three these are three up closed candles so we're going to wait for price to close below them as it does right here so any selling opportunity we get if price retraces higher this is exactly where we're going to sell from to Target the failure swings and the internal range liquidity and the range low and this is exactly where we're going to sell from with a stop just above this High just in case if price trades higher trades into this fair value Gap and then does trade lower and there we go price trades into the sell side liquidity and it does it very easily why is this because I said failure swings have very low resistance and then prices dumps lower trades into them and takes out the liquidity below the internal range liquidity low and the low of the dealing range and then of course the failure swings as well so if you made it this far into the video make sure to drop a gem Emoji in the comments down below but that being said this is exactly how you can use the framework of my blueprint model and understanding liquidity of course if you want to learn more you can go into the description down below and sign up to a free trial so you can find more information about me within my Discord server and you can watch me live trade but with that being said I hope you guys found this video insightful and remember I'm reaching for you and I hope you find success in this business as always enjoy the rest of your day