ERL/IRL, Power of 3, AMD, HTF/LTF, Fair Value Gap (FVG)

Learn an SMC trading strategy utilizing External/Internal Range Liquidity (ERL/IRL), Power of 3, and FVG for reversals across currencies, gold, and indices. Com

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: educational
  • Timeframes: 6 hours, 8 hours, 4 hours, 30 minutes, 15 minutes, Higher Time Frame (HTF), Lower Time Frame (LTF)
  • Markets: Currencies (Divisas), Gold (Oro), Commodities, Indices (NASDAQ), Silver (Plata)

Indicators used

  • Fair Value Gap (FVG)
  • Price Action

Source video

Decoded from: Rangos en Trading ERL/IRL | PARTE 20 by Santanafxpro — watch the original

Key timestamps:

  • 1:50 - Definiendo Rango
  • 6:05 - Recomendación Marcar
  • 8:26 - Ejecuciones
  • 10:29 - Conectando con PO3
  • 15:48 - Entradas
  • 25:00 - Example 1: Silver Trade
  • 30:00 - Example 2: Silver Trade

Strategy overview

A fair value gap is the price imbalance left behind when a move travels too fast for both sides to transact, leaving a zone price often returns to fill. This entry decodes Part 20 of Santanafxpro's Spanish-language series on trading ranges, where the FVG is not treated as a standalone signal but as one piece of a larger map organized around a single question: where does liquidity sit relative to a defined range?

That question is answered with the ERL/IRL distinction. External Range Liquidity (ERL) sits at the outer edges of a range — the obvious highs and lows where stops rest — while Internal Range Liquidity (IRL) lives inside it, and the fair value gap is cast here as a form of internal liquidity: an imbalance the market is drawn back to before continuing. Framing the FVG as IRL rather than as an entry trigger changes how it is used — it becomes a target and a magnet within the range structure, not a signal read in isolation.

The lesson moves from defining the range and a recommended way to mark these levels to connecting the range map with the Power of 3 (accumulation–manipulation–distribution) cycle, closing on a silver trade as a worked example. As with any range-based SMC approach, the reading of external versus internal liquidity is what does the work, and this being a mid-series part, it assumes familiarity with the ranges framework built up in the earlier videos.

Topics

smc strategy · ict trading · price action · fair value gap strategy · tradingview strategy · forex strategy · gold trading strategy · nasdaq strategy · swing trading · day trading strategy · 15 minute strategy · power of 3 trading · erl irl strategy · trading strategy

Frequently asked questions

What is the difference between ERL and IRL?

External Range Liquidity (ERL) refers to liquidity resting at the outer edges of a range — the obvious swing highs and lows where stops accumulate — while Internal Range Liquidity (IRL) sits inside the range, including imbalances like fair value gaps that price tends to revisit before continuing.

How is a fair value gap used in this ERL/IRL framework?

Instead of acting as a standalone entry signal, the fair value gap is treated as internal range liquidity — a zone inside the range that price is drawn to fill — so it functions as a reference or target within the broader range map rather than a trigger on its own.

What does Power of 3 have to do with trading ranges?

Power of 3 describes an accumulation–manipulation–distribution cycle; the video connects its range map to that cycle, using the range's external and internal liquidity to frame where each phase tends to unfold.

Where can I explore range-based strategies like this one?

This entry decodes a Spanish-language video from Santanafxpro's ongoing ranges series. Strategy Decoder catalogs strategies from video sources so you can study the underlying concept and test range-based ideas on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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