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    Daily Bias Draw On Liquidity DOL

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    garlapatipavankalyan

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    Daily Bias Draw On Liquidity DOL

    Uploaded by

    garlapatipavankalyan
    601 views9 pages

    Original Title

    Daily_Bias__Draw_on_Liquidity_DOL

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    601 views9 pages

    Daily Bias Draw On Liquidity DOL

    Uploaded by

    garlapatipavankalyan

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 9

    Daily Bias &

    Draw on Liquidity (DOL)


    A short guide

    Please note: When referring to this guide you should have the
    existing knowledge of the Trade Entries Complete Guide available
    to download on our website: www.skylinetradersclub.com
    Why Daily Bias and Draw on Liquidity is important:
    Understanding Daily Bias and DOL allows you to
    trade in line with the trend and determine where
    price is likely to move next, leading to a much
    higher win rate

    They key to daily bias is understanding Internal and


    External Range liquidity:

    Internal Range Liquidity (IRL) is simply just Fair


    Value Gaps (FVG)

    External Range Liquidity (ERL) is Old Highs and


    Lows

    Example shown next...


    Price moves between ERL and IRL

    When we say “liquidity is taken” it just means price has moved through
    this liquidity level (old high or low).

    When ERL is taken, the FVG within that move (IRL) becomes our Draw on
    Liquidity

    When IRL is taken an external high or low is our next Draw on Liquidity

    And the cycle continues: ERL>IRL>ERL>IRL…


    Our objective each morning is to identify the
    next draw on liquidity using this concept. We
    typically use the higher time frames (D1, H4
    etc.) to determine daily bias.

    The DOL is not always clear. If you don’t know


    the draw, you shouldn’t be trading that pair.

    We will now look at some bullish and bearish


    examples on the charts...
    Bullish:

    In this example, we see price takes out the previous high (ERL)
    and then draws to the Fair Value Gap (IRL). This cycle continues
    upwards until there is some market structure shift or change of
    character at which point, we re-evaluate and find our next draw
    on liquidity.
    Bearish:

    In this example, we see price takes out the previous low (ERL)
    and then draws to the Fair Value Gap (IRL). This cycle continues
    downwards until there is some market structure shift or change
    of character at which point, we re-evaluate and find our next
    draw on liquidity.
    Example of Draw on Liquidity at a
    point in time:

    Here we can see price has taken IRL so will look to move to ERL
    next and so this is our DOL. We now look for buy setups and
    confirmations on lower time frames to take a buy entry, with
    our take profit target being the DOL.
    Markets are fractal so these concepts apply on
    every time frame and are very powerful

    You also want to look at the lower timeframes to


    see if there is any change in market structure
    before deciding on your draw

    When there is a Market Structure Shift or


    Change of Character our direction bias changes

    Remember: There are cases where the market


    doesn’t draw to liquidity, but it is a very
    common pattern and extremely important when
    finding your bias and setting price targets
    It is also important to use DOL alongside
    Premium and Discount concepts.

    Next Learning Materials:

    Sell in a Premium and Buy in a


    Discount...

    Please let me know if you have any


    questions in the Discord!

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