[Music] how's it going everyone this video is going to be over an external and internal range liquidity model so I'm going to focus on the relationship between internal and external liquidity and then using a change in the state of delivery or order blocks to get me from one to the other now the first thing we must review is what is internal range liquidity internal range liquidity is just a fair value Gap so here we have a bearish fair value Gap and here we have a bullish fair value Gap if you don't remember what a fair value Gap is please check out my video on Fair Value gaps the next thing we have to review is what is external range liquidity external range liquidity is just a swing high or a swing low so now that we understand what internal and external range liquidity is what is their relationship well we expect price to move from internal to external and external to internal so for example here after we have purged sell-side liquidity or external range liquidity I would anticipate price to move back into the range and go into internal range liquidity now here after reaching internal range liquidity if this is where we are going to form a lower high this is where I'd anticipate price to move from internal range liquidity to external range liquidity and so you can see we anticipate this relationship where price oscillates from external range liquidity to internal range liquidity external range liquidity to internal range liquidity or until we shift Trend or have some other movement which breaks this and then it restarts so let's take a look at the flowchart for this model so the first thing I'm going to be looking for is a higher time frame bias with this I want to anticipate if I want price to move higher or lower from here I'm either going to be looking for internal range liquidity or a fair value Gap to then trade to a high or a low or external range liquidity or I'm going to be looking for internal range liquidity or a high and a low and trading into a fair value Gap once I have that criteria met I am then going down to the lower time frame looking for a stop raid a change in the state of delivery and then I will be targeting just around a 2R trade and this must all be done within a Kill Zone so let's take a look at an example of this before we hop into trading view so here in this example you can see we have a higher time frame and let's say our bias was bullish here you can see we have swept out a low and we have external range liquidity that has been taken with our relationship between external and internal range liquidity I would anticipate price to move from external range liquidity into internal range liquidity with that bias I can be looking for a stop rate on the lower time frame a change in the state of delivery and then look to get onside reaching for that internal range liquidity and 2 R so let's hop into trading view so with our first example here we have gold on the weekly chart and you can see previous week closed over the previous so according to my daily bias video I could anticipate price to reach for its previous weeks high once again now dropping down to the 4-Hour time frame let's see if we can get displacement towards our objective with a fair value Gap or a sweep of a low so here you can see we are reaching towards our previous week's high and we do have a 4H hour fair value Gap here so now I'd want to see if price reaches back into that fair value Gap here you can see price reaches back into that fair value Gap so on this time frame our internal range liquidity would be this 4-Hour fair value Gap and we have another swing High here which would be our external range liquidity as well as our previous week's high so let's go down to the 15-minute chart so down here on the 15-minute chart you can see we do have that sweep into our 4our internal range liquidity and looking for our 4-Hour external range liquidity and pre week's high so now going through the flowchart we have had our stop raid have we had our change in the state of delivery we haven't we have not closed over the series of down Clos candles that has made this low let's see if price continues and can close over that so price cannot go close over this before it makes a new low so now with making a new low this would not be our change in the state of delivery with our change in the state of delivery I'm finding the series or singular candle that made the low and then if price closes over it so this is now the candle that has made the low so for a change in the state of delivery I'd want to see price close over that do we get the closure we do not yet so we wait now with this candle here we do have a close over the down close candle that made the low so this would be my change in the state of delivery looking to Target my 4-Hour external range liquidity as well as my previous week's high now with this I can go ahead and take an entry because my entry is off of an order block or the change on the state of delivery and then I'd be looking for my 4-Hour sell side or my previous week's high now with this I'd want to have my stop on the swing low but you can see how this doesn't give 2 R so to meet that 2 R minimum I'll either have to extend my price Target or move my invalidation now with this I wouldn't really want to see price disrespect .5 of this down Clos candle body so I can put my stop a little bit higher up similar to where a breaker block entry stop loss would be now as we let this continue let's see what happens and there we go now if you noticed once we swept out another low here and then we closed over this down close candle that would be the propulsion block but you can see we get 2 R so to review we use the weekly candle closing over the previous to anticipate a continuation of this trend higher then we use the 4H hour reaching into its fair value Gap or internal range liquidity and looking to Target external range liquidity and previous week's high from there going to the 15minute chart and then on the 15-minute chart looking for that change in the state of delivery in that internal range liquidity going to Target that external range liquidity so let's hop into another example so here we are with our next example and if you're taking a look at the daily chart here on the right you can see we have swept out our daily low and we have closed back inside the range so with this I could be bullish on the following day so you can see here as we get into the following day do we have any fair value gaps or lows we can sweep out so we could sweep out this low but then that would invalidate the idea as that would be taking out the daily low we anticipate to hold so do we have any fair value gaps we do right here so as we reach into this fair value Gap here we have our internal range liquidity where is our external range liquidity it would be this high as well as this high or those equal highs so with this I can drop down to the 5minute time frame now with this I'd be looking for a change in the state of delivery on this 5 minute time frame using the hourly internal to external liquidity now with this current move here you can see it is not clean we don't have a clean series of down closed candles so generally what I do here is I just use this whole move so we have this large down close candle and then the continued move I can just use this as my ch change in the state of delivery so as we move forward here we get this close over here so now confirming this as a change in the state of delivery so I can look to get on side with this now if I was going to enter on this close my stop on this low that doesn't really make sense in terms of risk to reward right so in this case I would have to wait for a retest to then look to get long again so you can see we then take out our external liquidity so this is one of those scenarios where if if I have a strong bias that price is going to trade higher I can still anticipate this to support price higher and trade that higher however if I'm lacking that strong narrative this is going to be something I want to avoid because now I have taken out this buy side liquidity and I'm either going to look for internal range liquidity or the other side of the range so let's see what happens if we were to approach this with a strong bias so you can see we're getting a consolidation here now we are sweeping out the low of this consolidation let's see what happens next now we are getting a reaction out of the mean threshold of this series down right the upper half of this is supporting price higher so this is where I could look to get on side with the move higher or if I want to wait for more confirmation I would wait for a series to form here or another order block formation or a propulsion block here's here you can see we get this closure so if I wanted to try this again I could enter have my stop on this swing low because that is below the mean threshold of this which would I anticipate not to be reached with a propulsion block and then I can look to Target to R now like I said this only really makes sense if I have a very strong narrative or bias to the upside as I would not anticipate this to hold if I was wrong and price was just to range so let's see what happens and you can see there we get that retest of the propulsion block as we let this continue to play out we get a move higher for our 2 RTP now let's go back out to the hourly time frame here so you can see how that worked we had a move into our hourly internal range liquidity and then we reach out and close over our external range liquidity with the anticipation we trade higher from the daily chart now if this trend is going to continue where we are forming higher lows in higher highs then I would anticipate a higher low to be formed somewhere do we have any sort of fair value Gap in this range we do so let's see if price retraces back into this area so here you can see we do not reach into that fair value Gap we actually just make equal lows so let's see if we can reach back into it and here we reach back into it so if we are going to trade higher and form once again a higher low to make a higher high we would go internal to external liquidity so this would be our Target so now back here down on the 5 minute time frame where would be our change in the state of delivery we find the low we find the series of candles that made that low and then I Mark out the opening price in that Series so I would need a close over this to continue higher so here we have a close over now this is a little far from where I'd want to take an entry so I can always wait for a retest and place a limit order like so or I can always wait for the retest and then get a continuation entry so as we let this continue here we would get tagged in where would be the continuation entry it would be right here as we have now validated this low so we could take a new entry there with my stop on this low targeting 2 R so let's see how these work out so you can see the first one would have hit TP there the continuation entry would have hit TP there so going back to the hourly time frame just to review and we will clean up our drawings here to make it make sense in a bullish Trend here I'm anticipating price to make higher lows and higher highs so when we make a high higher low I'm anticipating a higher high and then a higher low and you can see as this trend continues it's going from internal range liquidity to external range liquidity to internal range liquidity to external range liquidity hopefully that makes sense let's get into another example so here we are in another example if we're anticipating this trend to continue and we are forming higher lows and higher highs and we get a retracement here I'm anticipating price to react in the internal range liquidity and then reach for external range liquidity so as we let this continue to play out or reach into that internal range liquidity you can see we are respecting this fair value Gap so let's drop down to the hourly time frame so now that we have determined a bias from our higher time frame Trend and we have an internal range liquidity on the daily chart an external range liquidity on the daily chart as well do we have that change in the state of delivery on the hourly chart we do right we find the low the candles that made that we can either use this or that I would prefer to use this one and so then now I'm anticipating price to continue to trade higher off of this so there's kind of two options here I can take an entry with where I would need my stop below 0 five of this or I can wait for a new formation or a new entry to form in this next candle to trade it higher so where would that occur well I'd want to see if we either sweep out a low or reach into a fair value Gap currently we just have this low here so let's see what happens so now that we have swept out that low I would anticipate price to trade higher towards this external range liquidity have we formed a new order block we have as we've closed over the downlo candles that has made this low so from here I can look to take my entry put my stop on this low and I can Target Two r or hold Runners towards our external range liquidity here you can see two R gets hit and then we have another retracement into internal range liquidity back to external range liquidity and as we let this continue you can see we go and reach that daily external range liquidity so as we give another candle here on the daily chart here you can see we wretch into this fair value Gap here on the daily time frame and then we go in reach our external range liquidity or this high on the daily time frame hopefully that makes sense and I hope you enjoyed this model I find it very simple as you only have to determine a few things and it is fairly mechanical in its process if you did enjoy it and you do want this PDF be sure to check out my free Discord as it will be located there I hope you have a great rest of your day and I'll see you guys next time