Everytime when the market makes a new range, mark the high and the new low and youll be trading in the range, so if you trade at a bearish orderblock thats going to be a return to internal range liquidity but youre going to be looking for external range liquidity to exit on
ICTs entries are mostly entries on internal liquidity and exits on external liquidity
Once you understand where the HTF wants to go you can frame your setups to lower timeframe
We can run external range liquidity on the daily but on the monthly it can still be internal
When we understand where the weekly and monthly are willing to trade to, on the daily it creates a recipe for low resistance liquidity runs. So when we expect a high to go because of the monthly and weekly bias, then these highs are a low resistance liquidity run. Because price has an agenda. So with this idea we can classify wether its a high resistance or low resistance liquidity run
So on the 4h you can see we have very little resistance running trough the highs, because its framed on low resistance liquidity runs based on the HTF monthly
This is how ICT know which stops will be taken, he uses the HTF institutional orderflow to frame out where internal range liquidity is and external range liquidity is, where is the buy stops, what kinda entry am i using and how is it aligned with the HTF
He doesnt use the low where there is a consolidation, he uses the energetic low, the low with the red arrow is the one he uses
You’re looking to buy with internal range liquidity or a bullish orderblock inside the previous range, and try to take profit at an old external high or above it, while you’re in sync with the HTF directional bias based on institutional orderflow, looking at the monthly ranges and where it wants to trade to, in this case a monthly FVG
Since were bullish were looking for a displacement up and a retracement into an orderblock
If we dont see any ranges that create new buying opportunities then we can target lows, so go trough the market place and find the swing lows and wait for price to trade trough them on the downside, turtle soup
The type of trader youre going to be, is determined by which setups you find easy to see in the charts, either turtle soups, return to fair value inside the range, you don’t have to find a setup everyday, you’re looking for a setup once a week
If we know the HTF is bullish, our mind switched to okay where are the sell stops that theyre reaching for. Because if it wants to go higher and its dropping, were going to look for external range liquidity and once we trade below that and it tips it hand in the form of a quick reaction and see institutional sponsorship, wait for a bullish orderblock. The bullish orderblock wont always happen straight away. So its takes external range liquidity and then an internal range liquidity setup occurs as confirmation
This helps you define what a low resistance liquidity should be vs a high resistance run
The monthly chart is key to frame low resistance runs, if you cant frame where the monthly is going then drop down to the weekly