The Dealing Range

The dynamics of the markets develop within ranges. Understanding the formation of a range is crucial to grasp the mechanism of price formation. A trading range is established when buy and sell orders are activated, creating a new fluctuation with its own high and low. These define the current trading range. The IPDA (Interbank Price Delivery Algorithm) searches within this range for specific patterns such as PDArrays/FVGs or INTERNAL RANGE LIQUIDITY (highs/lows within the range).

The IPDA also looks for internal range liquidity, where interbank traders seek to match buy or sell orders with available participants, transferring their positions to participants willing to operate above or below the highs and lows of the range (EXTERNAL RANGE LIQUIDITY).

The market constantly fluctuates between internal and external range liquidity, unless manual manipulation occurs.