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Draw on Liquidity (DOL) - ICT Concepts
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Draw on Liquidity (DOL) - ICT Concepts

Introduction

The speaker introduces the topic of finding draw on liquidity and explains that it is dependent on the time frames being used.

Finding Draw on Liquidity

  • The speaker uses the Daily 4 hour and one hour as the time frames where they find their draw.
  • They explain that a draw on liquidity is when the market searches for external and internal liquidity.
  • To find their draw, they search for external liquidity such as old highs and lows, equal highs and lows, as well as internal liquidity such as fair value gaps and order blocks.
  • Occasionally, they also consider volume and balance or gap in price to determine their draw.

Examples of Finding Draw on Liquidity

The speaker provides examples of how to find draw on liquidity using price action.

Example 1: NQ 4 Hour Chart

  • After a gap up and aggressive move lower following displacement, the speaker looks for an old low being rammed to determine if price will displace back up into the range pushing a bullish narrative or continue to fall down.
  • If there is displacement up, they look for a reach into fair value gap which would be their draw on liquidity.
  • If we are going from an OTE of this range back to an OTE of another range what do we have here? A fair value Gap as well as a previous low so I would want to see price draw back into here
  • After taking this low we don't displace back up so we're likely to go lower.
  • We're failing to displace below this low so we're likely to draw higher back up into the range.
  • After taking this low, they look for an order block sitting right here that price seems to be respecting. They want to see price take this slope and possibly this low.
  • Price draws lower and if it doesn't displace below the slope, it's likely to reach for old highs.

Example 2: NQ 4 Hour Chart

  • The speaker looks for displacement above a high which would be their target.

Analysis of Fair Value Gap

The speaker analyzes the fair value gap on different timeframes, including daily, four-hour, and hourly charts.

Fair Value Gap on Different Timeframes

  • A higher value gap is observed on the daily chart.
  • On the four-hour chart, a four-hour fair value gap is nested within this daily fair value gap.
  • On the hourly chart, an hourly fair value up is nested within both of those.

Analysis of Price Action Before RTH Open

The speaker analyzes price action before RTH open using a 15-minute chart.

Price Action Before RTH Open

  • A gap in price is observed before RTH open.
  • This gap was respected and aggressively displaced over.
  • At eight o'clock, we drop down into this fair value gap here running these internal lows and actually creating an smt.

Trading NASDAQ After Sloppy Price Action

The speaker discusses trading NASDAQ after sloppy price action using a one-minute chart.

Trading NASDAQ After Sloppy Price Action

  • There was quite a bit of sloppy price action and whipping around before open.
  • The highs were taken right here aimed down took these lows. The smt still holding and then getting a move higher.
  • Once we made this move out then I was aware of it there is a breaker right here but what I was focusing on was this border block right here that was created and then I took my entry right here with a stop on this low targeting 39.50 or just slightly before that draw on liquidity.

Importance of Drawing Liquidity

The speaker emphasizes the importance of drawing liquidity when trading.

Importance of Drawing Liquidity

  • The speaker mentions that if they didn't know that their drawing liquidity was higher, they probably would not have been looking long right here after we ran this high.
  • Knowing so, the lower time frame did not scare them out of a position and was able to take a trade.

Conclusion

The speaker concludes the video by thanking viewers for watching and encouraging them to like, subscribe, and leave any questions in the comments below.

Conclusion

  • The speaker hopes this video helped viewers out.
  • Viewers are encouraged to like and subscribe.
  • Any questions can be left in the comments below.
Video description

Where is price likely to draw to? Course : https://themarketlens.com/ Indicator : https://ttradesmodel.com/ Use code TTrades https://tinyurl.com/MFFUTTrades Use Code TTRADES https://tinyurl.com/ApexTraderFundingTTradesedu Use code TTRADES https://fxreplay.com/?via=ttrades http://ttradesedu.com/ 0:00 Intro 0:15 Draw on Liquidity 1:28 Example 1 5:43 Example 2 8:05 Outro CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or overcompensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.