Liquidity - Matrix

Slowly rounding up the hardest concept of EXODUS, from here on it will become a lot more practical... Hopefully. We mentioned arrays before, but before we tap into that there is a small concept first, which is a liquidity matrix.

————-- 018 - Liquidity Matrix

We use the liquidity matrix to help us identify our exits of our traders, it helps us define and setup the range before we take and place trades.

The dealing range is divided in two sections

- Premium = expensive

- Discount = cheap

In the premium range we expect a sell program to occur, so we look for opposing bearish arrays.

in the discount range we expect a buy program to occur, so we look for opposing bullish arrays.

Dealing ranges help answer that 2nd question -> Where are we in the market. It's mainly beneficial to understand where you want to exit if you are in a position.

Lets say you managed to get into a buy in the discount array, and are looking for potential exits, you would try to run it till you meet opposing arrays, in this case aiming for premium arrays.

In this case it could have been, previous highs acting like buyside liquidity, the displacement or the bearish orderblock. All of these were arrays in the premium section of our matrix. Different exits.

So now it makes sense, all these technicals tools you will learn later are PDA's... since they are opposing arrays in either the premium/discount area of your dealing range.

————-- 019 - Internal vs External


This one is quite straightforward.

In simple terms -> everything that is happening inside your current dealing range is internal liquidity, everything that happens outside is external

- internal = inside current range

- external = outside current range

The general rule of thumb that you want to start engraining in the back of your head now is that you never fully target external liquidity.

The technicalities and strategy will come soon enough, but with every next chart/setups showcased have it in the back of your head that external liquidity isn't the main target.

Ideal scenario would be you get into buyside momentum within the discount, and start running price till the premium. Where you take partial profits, and then run the rest/remainder of your position to the first external liquidity array -> ELA

————-- 020 - Matrix Examples

So how does it look like on the charts?

Everything within the current range is internal. As such.

Everything within that current range are ILA, internal liquidity arrays. Wether that be the BPR ( balanced price range), orderblocks or displacements.

Lets say you managed to get a buy order in, it would look something like this

-> https://www.tradingview.com/x/ZpeIzhvp/ <-

See how you target majority of your profits within the internal liquidity, and then let the rest run till either your first external opposing side liquidity ( BSL in this case) or run it till the first opposing external array.

All those levels marked in the blue dashed line

Sometimes your internal/external targets are closeby.

In those cases, if we have a clear draw on liquidity ( high probability sync ) with higher timeframes, we can target the first external liquidity array, as price will most likely just induce the dealing range high

So here we enter on internal liquidity and target the external liquidity of this range

————-- 018 - Liquidity Matrix

We use the liquidity matrix to help us identify our exits of our traders, it helps us define and setup the range before we take and place trades.

The dealing range is divided in two sections

- Premium = expensive

- Discount = cheap

In the premium range we expect a sell program to occur, so we look for opposing bearish arrays.

in the discount range we expect a buy program to occur, so we look for opposing bullish arrays.

Dealing ranges help answer that 2nd question -> Where are we in the market. It's mainly beneficial to understand where you want to exit if you are in a position.

Lets say you managed to get into a buy in the discount array, and are looking for potential exits, you would try to run it till you meet opposing arrays, in this case aiming for premium arrays.

In this case it could have been, previous highs acting like buyside liquidity, the displacement or the bearish orderblock. All of these were arrays in the premium section of our matrix. Different exits.

So now it makes sense, all these technicals tools you will learn later are PDA's... since they are opposing arrays in either the premium/discount area of your dealing range.

————-- 019 - Internal vs External


This one is quite straightforward.

In simple terms -> everything that is happening inside your current dealing range is internal liquidity, everything that happens outside is external

- internal = inside current range

- external = outside current range

The general rule of thumb that you want to start engraining in the back of your head now is that you never fully target external liquidity.

The technicalities and strategy will come soon enough, but with every next chart/setups showcased have it in the back of your head that external liquidity isn't the main target.

Ideal scenario would be you get into buyside momentum within the discount, and start running price till the premium. Where you take partial profits, and then run the rest/remainder of your position to the first external liquidity array -> ELA

————-- 020 - Matrix Examples

So how does it look like on the charts?

Everything within the current range is internal. As such.

Everything within that current range are ILA, internal liquidity arrays. Wether that be the BPR ( balanced price range), orderblocks or displacements.

Lets say you managed to get a buy order in, it would look something like this

-> https://www.tradingview.com/x/ZpeIzhvp/ <-

See how you target majority of your profits within the internal liquidity, and then let the rest run till either your first external opposing side liquidity ( BSL in this case) or run it till the first opposing external array.

All those levels marked in the blue dashed line

Sometimes your internal/external targets are closeby.

In those cases, if we have a clear draw on liquidity ( high probability sync ) with higher timeframes, we can target the first external liquidity array, as price will most likely just induce the dealing range high

So here we enter on internal liquidity and target the external liquidity of this range

————-- 018 - Liquidity Matrix

We use the liquidity matrix to help us identify our exits of our traders, it helps us define and setup the range before we take and place trades.

The dealing range is divided in two sections

- Premium = expensive

- Discount = cheap

In the premium range we expect a sell program to occur, so we look for opposing bearish arrays.

in the discount range we expect a buy program to occur, so we look for opposing bullish arrays.

Dealing ranges help answer that 2nd question -> Where are we in the market. It's mainly beneficial to understand where you want to exit if you are in a position.

Lets say you managed to get into a buy in the discount array, and are looking for potential exits, you would try to run it till you meet opposing arrays, in this case aiming for premium arrays.

In this case it could have been, previous highs acting like buyside liquidity, the displacement or the bearish orderblock. All of these were arrays in the premium section of our matrix. Different exits.

So now it makes sense, all these technicals tools you will learn later are PDA's... since they are opposing arrays in either the premium/discount area of your dealing range.

————-- 019 - Internal vs External


This one is quite straightforward.

In simple terms -> everything that is happening inside your current dealing range is internal liquidity, everything that happens outside is external

- internal = inside current range

- external = outside current range

The general rule of thumb that you want to start engraining in the back of your head now is that you never fully target external liquidity.

The technicalities and strategy will come soon enough, but with every next chart/setups showcased have it in the back of your head that external liquidity isn't the main target.

Ideal scenario would be you get into buyside momentum within the discount, and start running price till the premium. Where you take partial profits, and then run the rest/remainder of your position to the first external liquidity array -> ELA

————-- 020 - Matrix Examples

So how does it look like on the charts?

Everything within the current range is internal. As such.

Everything within that current range are ILA, internal liquidity arrays. Wether that be the BPR ( balanced price range), orderblocks or displacements.

Lets say you managed to get a buy order in, it would look something like this

-> https://www.tradingview.com/x/ZpeIzhvp/ <-

See how you target majority of your profits within the internal liquidity, and then let the rest run till either your first external opposing side liquidity ( BSL in this case) or run it till the first opposing external array.

All those levels marked in the blue dashed line

Sometimes your internal/external targets are closeby.

In those cases, if we have a clear draw on liquidity ( high probability sync ) with higher timeframes, we can target the first external liquidity array, as price will most likely just induce the dealing range high

So here we enter on internal liquidity and target the external liquidity of this range

Complete Lesson