Kardec TraderFutures Trader. Creator of The Midas Touch. Mentor

The ONLY Liquidity Video You NEED To Watch🚨

22 Feb 2026 · 1 min

Watch on YouTube

0:33

In this concise tutorial, the speaker breaks down key liquidity concepts that drive price movements in trading. He defines external liquidity as the liquidity pool at the top of a price range and internal liquidity as the smaller pools that form within the range as price ascends. The strategy presented involves taking entries off internal liquidity after a false reaction, then targeting the external liquidity at the range high. He explains that once external liquidity is exhausted, the market often reverses, leading to a sell‑off because the liquidity that was built at the high is now being absorbed. The discussion also notes that higher‑time‑frame context can influence whether the price retests the high after being taken out.

Chapters

Markets left liquidity at the highs. For me, if I'm looking for a buy opportunity in this scenario right here, understand there's liquidity at this high. I want to target it. Typically, what happens is it's now, this is known as your external, right? The top of the range. Here you have your bottom of the range. And on the way up, price will usually not all the time, but form some sort of internal. I'm taking entries off internal liquidity gain taken. So if we get that false reaction down here, I'm taking an entry down here and I'm targeting external. And then if I'm looking for sometimes after this high gets taken out again, it all depends what the higher time frame saying. Typically, once external is taken, there's reversals that occur and then you'll have sell off. Why? Because there's liquidity built here.