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Finding the Draw on Liquidity

Build a directional objective from meaningful liquidity and inefficiency before considering an entry.

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Liquidity Lab notes

Build the framework.

Potential draws include the previous-day, previous-session, or previous-week high and low.

A current or old New Week Opening Gap can frame a draw, as can expansion away from a NWOG.

An inefficiency or Fair Value Gap can also become an objective when it fits the broader delivery context.

Confluence with the ICT 2022 Model can strengthen context, but ICT 2022 familiarity is helpful rather than mandatory for opening this Learn path.

The draw comes before the entry because an FVG without a destination does not explain where price is expected to deliver.

Key rules

Mark meaningful external liquidity and inefficiency first.

Choose the most plausible objective from current context.

Use the objective to judge direction and available range.

Common mistakes

Calling the nearest FVG an entry without an objective.

Marking every old high and low as equally important.

Changing the draw only because a single candle moves against the idea.

Liquidity Lab practice interpretation

Knowledge check

Why is a random FVG insufficient?

Reveal answer

It identifies an imbalance but does not establish the directional objective or likely draw on liquidity.