# Internal vs. External Liquidity Sweeps in Trading

- Original post: https://www.twitter.com/i/status/2121450167404548449
- Source account: [@AtlasOnChainx](https://x.com/AtlasOnChainx)
- Source language: English
- Duration: 0:54
- Published: 2026-11-14
- Canonical URL: https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading

## Transcript

[0:00](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading) This, my friends, is not a good liquidity sweep.

[0:02](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=2) If you think it is, you're going to enter into a short position above this high, and you're going to have your take profit set at the sell side below, only for price to continue higher and stop you out.

[0:10](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=10) So let me show you how to find the right liquidity sweep so you can avoid losing thousands.

[0:13](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=13) Here on the chart, we have three different pools of liquidity.

[0:16](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=16) The liquidity resting within a range is known as our internal liquidity.

[0:19](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=19) The liquidity resting outside of the range is known as our external liquidity.

[0:23](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=23) We want to make sure we avoid using internal liquidity sweeps.

[0:26](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=26) Instead, we want to focus on using external range liquidity sweeps to get high probability setups.

[0:30](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=30) So let's play this out. When price swept the first pool of internal liquidity, we can see that we continued higher.

[0:34](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=34) When price swept the second pool of internal liquidity, we can see the same thing happen.

[0:38](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=38) Traders that shorted after both of these liquidity sweeps would have been stopped out.

[0:41](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=41) Now let's see what happens when we use the external range liquidity sweep.

[0:45](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=45) Price flushed lower after engaging with the ERL.

[0:48](https://www.translate.mom/transcript/ZU1lMpVG33f5/en/internal-vs-external-liquidity-sweeps-in-trading?t=48) My Forever Model Rulebook, which I use every single morning, explains exactly which liquidity sweep to use.