Draws On Liquidity
The lesson has three parts: an introduction, the liquidity pools, and covering each draw.
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Liquidity Pools
The slides from the video, with an explanation under each one. Watch the video, then keep the PDF.
Quick terms. Gap / FVG = fair value gap, the same thing. Draw on liquidity (DOL) = where price is heading next. PDH / PDL = previous day's high and low. Educational content only, not financial advice.
Introduction
Before any trade, you must understand where the market wants to go, and build a narrative for how it gets there. The draws on liquidity are relevant levels, PDH/PDL, session highs and lows, and gaps.
Relevant Levels
Relevant levels are set on the daily chart. A relevant level is a swing high or low, or a gap, that can be targeted for the day. The distance between the lows and the highs matters.
Previous Days
The PDH and PDL are valid points to reverse from or to target. When the daily forms a reversal away from the PDH/PDL, focus on continuations.
Session High / Lows
The session highs and lows come from the Asia and London sessions. The slide gives Asia at 8 PM, London at 2 AM and New York at 8:30 AM. New York can be used if you're trading overnight from the previous day. The chart marks the session levels as lines.
Gaps (Fair Value Gaps)
Daily and 4H gaps are the last draw. When you're trading from an external level, gaps become the draw.
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