🧵 Twitter Thread: Trading Internal Liquidity to External Liquidity – A Simple Model 💰💹
In this thread, we’ll explore the concept of entering a trade at an area of internal liquidity and setting our sights on an area of external liquidity to maximize our profits!

1/ Understanding Price Delivery: When our higher time frames expand, our strategy is to join the trend during retracements. In a bullish market, we buy at higher lows, and in a bearish market, we sell at lower highs. Actively participating in the market during retracements is our approach.

2/ Internal Liquidity: Our expectation is that price will retrace to an area of imbalance. By identifying these areas of imbalance and combining additional ICT concepts, we can strategically enter the market, aligning our trades with the overall trend and take advantage of the next phase of expansion.

3/ Weekly Profile: Our goal is to synchronize our trading narrative with significant news events on the economic calendar, aiming to identify potential weekly market profiles. Instead of targeting precise market lows or highs, we prioritize capturing the weekly expansion. Tuesday to Thursday usually offer high-probability days for expansion.
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4/ Dealing Range: To help us determine our internal liquidity point of interest, we must understand our current dealing range. When considering a long position, we focus on discount arrays to support price, whereas for short positions, we examine premium arrays to resist price. Understanding our pd arrays can assist us in determining the appropriate internal liquidity area to engage in trades.

5/ LRLR vs HRLR: Be on the lookout for situations characterized by Low Resistance Liquidity Runs (LRLR). These setups often present high probability trading opportunities that exhibit smoother and cleaner expansion compared to high resistance liquidity runs. By identifying the specific areas where LRLR is occurring and incorporating them into your trading narrative, you increase your chances of capturing an explosive market move. These LRLR scenarios offer favorable conditions that are more conducive to successful trades and have the potential to generate significant profits.

6/ Prior to entering a trade, we have specific conditions that must be satisfied to instill confidence in our decision and ensure that we are positioned on the correct side of the market. One tool we can employ for this purpose is to monitor the change in the state of delivery on our M15 and H1 charts, from our external point of interest.

7/ Patience is Key: It's important to keep in mind that our goal is not necessarily to capture the exact market low. Instead, we exercise patience and wait for confirmation before entering a trade. We have the flexibility to engage in the market on the following day once we receive the necessary confirmation. There will be plenty of re-accumulation areas (buy program) or re-distribution (sell program) to engage in price.

8/ Once we have received confirmation, our next step is to actively participate in the market using our preferred entry model. We follow a set of predefined conditions for our entry models, ensuring that we adhere to a systematic approach in our trading strategy - much like with our HTF analysis.

9/ Once engaged in the trade, be sure to practice sound trade management. Our goal is to scale our position as the trade unfolds and consistently adjust our stop loss accordingly. However, keep in mind that our ultimate target is the external liquidity area. Remember, the market primarily operates in two modes: moving from external liquidity to an internal area for rebalancing or moving from a rebalanced area towards an external target.

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