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
2. HTF Imbalance
Identify Buyside or Sellside Liquidity
or Imbalance on HTF, wait for price
to reach to these levels and look for
LTF entry models
Buyside Raid
Sellside Raid
LIQ - PDH / PDL, PWH / PWL, EQH / EQL
IMBALANCE
Imbalance / FVG
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
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
trade.
LIQ Grab
FVG
Liq grab with valid bos
(body candle close) + Fvg
or IDM, more confluence
and higher probability.
BOS / CH
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
HTF POI
Price moves
into HTF POI
STAGES
Liquidity Draw
Reversal Zone
SMR
LTF ENTRY
MODEL
Excecution
Objective
Take Profit
Price returns to
consolidation
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
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 NO RAID NO TRADE
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
BOS
LIQ Grab + BOS + IDM + RTO
FVG
BOS
LIQ Grab + BOS + FVG + RTO
Premium / Discount
1
Premium
0.5
Discount
0
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
ENTRY CONFIRMATION
On Ltf now we have liq grab filling HTF FVG
followed by break of structure with Fvg and
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
FVG
5R
BOS
Price Moves Into POI (BSL & H4 FVG)
$$$
Liquidity Engineered
SSL
Objective
HTF IMBALANCE
LTF RAID
IDM
FVG
BOS
Line Chart for more clarity on LTF SMR
Trade entered, now our objective is
next LIQ pool, for above trade
example, our objective is Sell side
Liquidity, you can partial at internal
liq, or full tp at ssl
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
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END NOTE
These
concepts
are
not
my
own,
i
have
credited and mentioned the reference,
also
the
simplest
concepts
way
are
possible
potrayed
from
in
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.
demo
trade
Thank
you
support
Always
before
and
going
Backtest
live
appreciate
and
trading.
all
your