External Liquidity: Smart Money’s Primary Target Zones External liquidity refers to obvious liquidity pools formed by retail traders’ stop-losses at swing highs and lows — places where price previously reversed, forming double tops, bottoms, trendlines, or market structure points. These zones attract the largest clusters of pending stop orders. Smart Money traders understand that price is magnetized toward these areas not by chance, but by design — because that’s where liquidity sits. Institutions target these pools to fill their large orders without slippage. Price often sweeps external liquidity before reversing, as this sweep offers entry for Smart Money and exit for retail. Recognizing external liquidity allows traders to anticipate engineered fakeouts, not fall for them. For example, a clean high before a news event may be swept before price moves the opposite direction. External liquidity is about intent: Smart Money moves price toward it not to follow trend, but to trigger and reverse. Trading around these zones requires patience, timing, and confirmation. #CommunityAMA