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Draw On Liquidity: Visual Guide by Hanson

The document provides a visual guide for drawing on liquidity in the foreign exchange market across high time frame (HTF) and low time frame (LTF) time periods. It outlines a 3-stage process: 1) Identifying HTF liquidity imbalances or buy/sell side liquidity raids; 2) Looking for LTF entry models like liquidity grabs or reversals after price reaches the HTF levels; 3) Taking profit at the next liquidity objective level. Examples are given of identifying an HTF imbalance fill on the 4H chart of $GU and confirming an entry with an LTF liquidity grab and reversal patterns on the M2 chart.

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Nabeel Sarwar
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89% found this document useful (9 votes)
5K views

Draw On Liquidity: Visual Guide by Hanson

The document provides a visual guide for drawing on liquidity in the foreign exchange market across high time frame (HTF) and low time frame (LTF) time periods. It outlines a 3-stage process: 1) Identifying HTF liquidity imbalances or buy/sell side liquidity raids; 2) Looking for LTF entry models like liquidity grabs or reversals after price reaches the HTF levels; 3) Taking profit at the next liquidity objective level. Examples are given of identifying an HTF imbalance fill on the 4H chart of $GU and confirming an entry with an LTF liquidity grab and reversal patterns on the M2 chart.

Uploaded by

Nabeel Sarwar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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DOL

DRAW ON LIQUIDITY
Visual Guide by Hanson
CREDITS AND REFERENCE

ICT

LOTUSXBT

GALACTIC

TRADING
Proud Partner
ELEMENTS

STRUCTURE LIQUIDITY ORDERFLOW

Before going through the guide, it is very important you


have very good understanding of how these elements work
DOL flow in three simple stages

HTF LIQ DRAW

LTF CONFIRMATION

OBJECTIVE
HTF LIQUDITIY DRAW

1. Buyside / Sell side Liquidity Raid Identify Buyside or Sellside Liquidity


or Imbalance on HTF, wait for price
2. HTF Imbalance to reach to these levels and look for
LTF entry models

Buyside Raid

Sellside Raid
LIQ - PDH / PDL, PWH / PWL, EQH / EQL

IMBALANCE

when price picks up momentum and


moves fast an inefficiency is created
leaving some orders not filled so the
market revisits to rebalance itself at
Imbalance / FVG some point in time, thats when we
position ourself

In order to find imbalances, it should


consists of 3 candles. For bearish
scenario, it is where there is a gap
between the lower wick of the first
candle & the top wick of the third
candle do not meet.
LTF ENTRY MODEL

LIQ GRAB + BOS + RTO

Once we have Liq draw from


HTF POI zoom into LTF, you
want Qm pattern to form as
confiramtion or else no
LIQ Grab trade.

FVG
Liq grab with valid bos
(body candle close) + Fvg
or IDM, more confluence
BOS / CH and higher probability.



your entry will at OB, FVG or


IDM with invalidation above
local High/Low. Live Example
towards the end

Buyside Raid
Invalidation

LTF VIEW

FVG
Entry

BOS

TP/ Objective is next level of liquidity


LIQUIDITY

INTERNAL EXTERNAL

LIQUIDITY

LIQUIDITY OBJECTIVE
Consolidation

Liquidity Engineered

Price moves
HTF POI
into HTF POI

Liquidity Draw
Reversal Zone
STAGES

LTF ENTRY
SMR
MODEL

Excecution

Price returns to
Objective
consolidation

Take Profit
DRAW ON LIQUIDITY

Price is manipulated into BSL


or SSL of the range, where the
stop orders trigger. These
orders provide liquidity for
large positions to enter/exit
without much slippage.

SMART MONEY REVERSAL

Once the Liquidity is Drawn,


price forms a reversal pattern,
we can identify the pattern
using simple market structure
shift, which allows us to enter
the trade, and then price
moves in the direction of the NO RAID NO TRADE
planned move. usually SMR
occurs in two forms, eihter as
Liq Raid or Swing failure

My ideal entry is m5m5 or


m5m1.

INDUCEMENT

Inducement is a trap left on


purpose abvoe or below supply
or demand by bigger entity to
mitigate the ob or sweep
liquidity later, The move is
designed to take out early
buyers/sellers and pattern
traders. we can use this liq
point to our advantage and
capitalise it

TIME COMBINATION

Daily -> M15


H4 -> M5 - M3
H1 -> M3 - M1

MODEL COMBINATION

HTF FVG + LTF SMR

HTF BSL / SSL + LTF SMR

HTF BSL / SSL + HTF FVG + LTF SMR

LTF ENTRY VARIATION

LIQ GRAB LIQ GRAB


IDM FVG

BOS BOS

LIQ Grab + BOS + IDM + RTO LIQ Grab + BOS + FVG + RTO
Premium / Discount

Premium

0.5

Discount

Enter shorts in premium of price

leg that broke market structure.

Enter longs in discount of price leg

that broke market structure.

If Bias is Bullish look for SMR at

discount region of the range

If Bias is Bearish look for SMR at

Premium region of the range


FOLLOW THE HTF TREND DONT FIGHT IT
When In Doubt

Zoom Out

Visual idea from Visualizevalue


LIVE EXAMPLE

HTF IMBALANCE Fill

Time Frame - H4
Pair - $GU
HTF Bias - Bearish

IMBALANCE

HTF IMBALANCE FILL (Liquidity draw) and


Buyside Raid, now we go down to LTF
(M5-M1) and look for reversal model for
confirmation (SMR) to enter the trade.
Always keep in mind of the HTF Bias
LTF ENTRY MODEL

Time Frame - M2
Invalidation

H4 IMBALANCE
Entry 1
LTF LIQ Grab

FVG Entry 2
Inducement

FVG
BOS

BOS

LIQ GRAB + BOS + FVG + IDM + RTO

On Ltf now we have liq grab filling HTF FVG


followed by break of structure with Fvg and
ENTRY CONFIRMATION IDM below fvg, good confluence to take the
trade, if first entry was missed, now we have
another fvg entry presented (Double
Confirmation) look at the above chart for
more information
TRADE MANAGEMENT

Time Frame - M3

H4 IMBALANCE
4R
LIQ Grab
IDM
5R
FVG

BOS

Price Moves Into POI (BSL & H4 FVG)


$$$
Liquidity Engineered
SSL Objective

HTF IMBALANCE

LTF RAID
IDM
Trade entered, now our objective is
FVG next LIQ pool, for above trade
example, our objective is Sell side
Liquidity, you can partial at internal
BOS liq, or full tp at ssl

Line Chart for more clarity on LTF SMR


ABBREIVATION
BSL - Buy Side Liquidity
SSL - Sell Side Liquidity
BOS - Break Of Structure
CH - Change Of Character
FVG - Fair Value Gap
IDM - Inducement
SMR - Smart Money Reversal
HTF - Higher Time Frame
LTF - Lower Time Frame
PDH - Previous Day High
PDL - Previous Day Low
PWH - Previous Week High
PWL - Previous Week Low
RTO - Return To Origin
FOR MORE CHART EXAMPLES

SCAN

SCAN THE ABOVE QR CODE


Instructions:
Open any QR scanner app

Scan the Code

It will redirect to my Notion 



site - where all my charts are 

stored
END NOTE

These concepts are not my own, i have

credited and mentioned the reference,

also the concepts are potrayed in

simplest way possible from my

understanding & what works for me, and

not meant to mentor anyone DYOR before

following it, this guide is published just to

demonstrate how i trade the model. Not a

Financial Advice. Always Backtest and

demo trade before going live trading.

Thank you and appreciate all your

support

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