Hello to all. It is said that market moves from internal liquidity to external liquidity and vice versa. Moreover, it is said that market moves from Buyside liquidity to sellside liquidity and vice versa as well. My question is: Does this mean that market moves from buyside to internal to sellside, and vice versa ? Thanks
Yes, the central banks are the factor that provides institutional liquidity to move price levels. By understanding the trading concept liquidity, it can refine and sharpen your trading. With internal range liquidity you also need to learn how to spot valid FVGs. FVGs manifest themselves in a sequence of three-candlesticks, FVGs show intention as to where will the DOL be seeking to reach in market.
1 Like
If you are talking about trading from a retail forex trader most likely using MT4 or MT5 then understand such concepts of liquidity are nice but not very helpful.
Because at the end of the day as a retail forex trader you only get two pieces of current information. Current bid price and current offer price. And historical data you only get 4 pieces of information for each time period. Open, High, Low and Close.
I guess you could look at it from a fundamental point of view that if the day seems to be a risk-on day or risk-off day then looking at the potential institutional flows to and from high risk and low risk assets.
At the end of the day the only thing that really matters is the nuts and bolts of how each individual market auction works. Think of forex as a two way auction market.
1 Like