Internal Range Liquidity, External Range Liquidity, Fair Value Gap

Learn how price moves between Internal and External Range Liquidity (IRL/ERL) in SMC and how Fair Value Gaps form. Understand daily bias with this advanced conc

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: educational

Indicators used

  • Fair Value Gap (FVG)
  • Internal Range Liquidity (IRL)
  • External Range Liquidity (ERL)

Source video

Decoded from: IRL to ERL (Daily Bias SOLVED) by Casper SMC — watch the original

Key timestamps:

  • 0:00 - Introduction to liquidity concepts
  • 0:07 - Price always moving towards liquidity
  • 0:12 - Definition of Internal Range Liquidity (Fair Value Gap)
  • 0:30 - Definition of External Range Liquidity (Highs/Lows)
  • 0:50 - Price movement from IRL to ERL and back

Strategy overview

A fair value gap is the imbalance left behind when price moves too fast for both sides to transact. What makes this entry distinct is that the source video never treats that gap as a zone to trade from — it files it under a category name, *internal range liquidity*, and the renaming is the whole lesson. Once the gap is classified as liquidity rather than as a pattern, it stops being a place you enter and becomes a place price is drawn toward.

The counterpart is *external range liquidity*: the swing highs and lows that bound the range from the outside. Between them the video builds a two-term taxonomy — everything relevant on the chart is either liquidity resting inside the range or liquidity resting at its edges — and then closes on the movement between the two, price travelling from the internal pool out to the external one and back. Framed that way, daily bias stops being a directional forecast read off trend or structure and becomes a positional question: which pool was most recently taken, and which one is therefore next in line.

The clip runs about a minute and is a vocabulary lesson rather than a trade plan. Casper SMC names no instrument, no timeframe and no session anchor, and no entry, stop or target logic was extracted from it — so this page documents the concept mapping as presented, not a rule set. "Daily Bias SOLVED" is the channel's title packaging; treat it as a headline, not as a verified claim.

Topics

internal range liquidity · external range liquidity · fair value gap · smc strategy · ict trading · price action · liquidity concepts · trading strategy · tradingview strategy · pine script · smart money concepts · market structure · order block

Frequently asked questions

What is internal range liquidity (IRL) in SMC?

Internal range liquidity refers to unfilled imbalances sitting inside a trading range — most commonly fair value gaps. The label reframes the gap as a target price may be drawn toward rather than as an entry zone.

What is external range liquidity (ERL)?

External range liquidity refers to the swing highs and lows that bound a range from the outside, where resting stop orders typically accumulate. It is the counterpart to internal liquidity in this two-category framework.

How does IRL to ERL relate to daily bias?

The idea is that price alternates between the two liquidity types — reaching into an internal gap, then extending to an external high or low, then rotating back. Bias is derived from where price sits in that alternation rather than from a trend or momentum reading.

Does this video provide entry and exit rules?

No — the source is a short definitional clip covering the liquidity concepts, and no entry, stop or target rules were extracted from it. Strategy Decoder documents what each video actually contains, including when a source stays at the concept level.

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.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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