# Terminology Understanding the terminology used in this model is essential for applying it effectively. This section defines key concepts, and abbreviations. Whether you're new to Smart Money Concepts or refining your current knowledge, this glossary will ensure clarity and consistency as you navigate the model. ### **External Range Liquidity (ERL)** ICT External Range Liquidity refers to the pools of liquidity located *outside* the boundaries of a defined dealing range—specifically, above previous swing highs and below previous swing lows. These areas are typically targeted by price as they represent clusters of stop orders and resting liquidity. ### **Internal Range Liquidity (IRL)** ICT Internal Range Liquidity is found *within* the dealing range itself. This internal liquidity often aligns with institutional reference points, such as Fair Value Gaps (FVGs), or other imbalances, which can be used as potential entry points in a trade setup. ### Smart Money Technique (SMT) ICT SMT (Smart Money Technique) Divergence occurs when two positively correlated assets, observed on the same timeframe, display conflicting market structures. For example, while one asset forms a higher low, the other forms a lower low—indicating a divergence in strength between the two. A common instance of this can be seen between pairs like GBP/USD and EUR/USD, where such a discrepancy may signal potential market inefficiency or a forthcoming reversal. ### Change In State of Delivery (CISD) Change in state of delivery (CISD) is based on the opening and closing price of a candlestick while the Market Structure Shift-MSS is based on the high and low of a candlestick. ### True Day Open (00:00) In ICT (Inner Circle Trader) terminology, the "true day open" refers to the start of a new trading day, typically defined as 00:00 EST (Eastern Standard Time). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.candelacharts.com/models/x-model-tm/terminology.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.