ICT External Range Liquidity (ERL) Explained

What is External Range Liquidity in ICT?

Liquidity beyond the high or low boundaries of a defined dealing range.

Definition of External Range Liquidity

Potential stop clusters resting outside a selected range's extremes.

How to identify External Range Liquidity

Choose a clear range with defined high and low; mark external stops just beyond each boundary.

Bullish External Range Liquidity example

price seeks buy-side liquidity above the range high.

Bearish External Range Liquidity example

price seeks sell-side liquidity below the range low.

External Range Liquidity chart examples

Practical trading example

After consolidating between Monday's high and low, price moves toward the prior week's high above the range.

Common mistakes and important notes

A range must be defined consistently. External liquidity can be taken and price can continue or reverse.

Related ICT concepts

Part of Liquidity Concepts. New to ICT? Start with the beginner guide.