Internal or External

What it teaches

Telling internal structure and liquidity from external.

• External swings bound the range of the last leg that broke structure. Every confirmed swing between them that formed after that leg is internal.
• A wick through an external swing that closes back inside has not moved the range.
• The common reading that price moves between the two layers: from internal to external liquidity and back.
• Choosing a target by layer instead of by whichever level is closest to the eye.

How a round plays

1. A chart shows a leg that broke structure, and smaller swings forming inside the range it made.
2. Step 1: tap the two external swings, where that leg began and where it ended. On these charts they are the lowest swing low and the highest swing high on screen.
3. Step 2: read which liquidity was taken last. If price took an internal swing, the read is the external pool on the other side. If the last candle wicked through an external swing and closed back inside, the read is the nearest untouched internal pool on the other side.
4. Tap the swing that holds that pool, then check with the Lens. The rest of the chart prints.
5. A run is six charts with two answers each and takes about four minutes.

How it is graded

The rule here: the external swings are where the last structure-breaking leg began and ended, and swings between them are internal. Internal liquidity taken points to the external pool on the other side. External swept with a close back inside points to the nearest untouched internal pool. Range and target are graded separately.