ERL
Also: External Range Liquidity
The extremes of the range, where the stops live. Price travels from the internal array towards them.
In the chapter
IIILiquidity
The market's fuel
From the same chapter
- BSLThe buy stops stacked ABOVE highs. Price visits them like a magnet.
- SSLThe sell stops stacked BELOW lows.
- RaidPrice running into a liquidity pool to trigger those stops, then reclaiming. It is manipulation, not direction.
- InducementAn 'obvious' intermediate high or low the algorithm manufactures so retail enters too early. Their stops fund the institutional entry at the real zone.
- Equal highs / lowsTwo or more extremes at the same price. They concentrate stops: magnets, not support.
- Trendline liquidityThe stops stacked along an obvious trendline. The more people draw it, the better it works as a trap.
- AcceptanceThe opposite of a sweep: price CLOSES beyond the level and continues. Never fade acceptance.
- PDH / PDLThe previous day's high and low: the reference daily liquidity pools.