Liquidity References and Path Structure
Compare the structure between current price and a liquidity reference instead of treating the reference as a guaranteed target.
Once you can describe candles, ranges, states and FVG references, ask a more complete question: what structure lies between current price and the reference area?
Liquidity references
Clear prior highs and lows are common references because they are visible places where price previously paused, turned or failed. Similar highs or lows can form a reference group. Range boundaries and candidate FVGs can provide supporting references.
Call them references first. “This is an upper liquidity reference” is a chart description. “Price must sweep it” is a prediction that needs more evidence than the label supplies.
Read the path, not only the endpoint
Suppose current price is 100 and a prior high is 120. Between them may be another high, a dense overlap zone, an FVG, an equilibrium line or a change of state. Those intervening structures can change what deserves attention before 120.
Describe the path as relatively clean, crowded or unclear. A clean path has fewer visible intervening structures; a crowded path needs more segmentation and re-observation. Neither description predicts arrival.
Useful conditional language includes: “the upper reference remains worth reviewing while the current state persists,” and “a new opposing structure in the middle would require a reassessment.”
Practice
Choose a timeframe, mark one upper and one lower reference, identify the source of each, and describe the path to each as clean, crowded or unclear. Add one condition that would change your view and one condition for no action.
Boundary
This lesson does not teach fixed sweep models, session routes, entries, stops or targets. It trains comparison of path structure and reference quality.