Liquidity Flashcards
(8 cards)
1
Q
What is ERL?
A
- External Range Liquidity.
- Contains large quantities of unfilled orders, or a large quantity of stop losses.
- Essentially strong support and resistance zones.
- Either results in trend continuation or trend reversal.
2
Q
What is IRL?
A
- Internal Range Liquidity (Fair Value Gap)
- This is what price uses as fuel to attack the swing highs and lows.
3
Q
How is bullish orderflow determined?
A
- Bullish orderflow is determined by price breaking through buy side liquidity zones.
4
Q
What is BoS?
A
(Trend continuation)
Break of Structure which refers to when a liquidity level is ran that confirms the continuation of the current trend.
5
Q
What is CHoCH?
A
(Trend reversal)
Change of Character which refers to when a liquidity level is broken and confirms the reversal of the current trend.
6
Q
What is the relationship between IRL and ERL?
A
The IRL is used to push through the ERL level.
7
Q
What is a liquidity sweep?
A
Price wicks above or below the ERL level, but does not close above or below.
8
Q
How is bearish orderflow determined?
A
- Bearish orderflow is determined by price breaking through sell side liquidity zones.
