The meeting focused on the presenter's daily routine for identifying "draw on liquidity" to determine market bias, specifically for short-term trading using technical analysis.
The process includes identifying external and internal liquidity across multiple timeframes and applying these insights to recent examples on NQ (Nasdaq futures) and S&P futures charts.
The attendee demonstrated their step-by-step analysis, discussed trade rationale, and concluded with an invitation for questions or comments.
Action Items
No specific action items were assigned during this meeting.
Approach to Identifying Draw on Liquidity
The presenter determines "draw on liquidity" each morning to set a trading bias, especially when trading on the 5-minute or lower timeframes (using daily, 4-hour, and 1-hour charts for reference).
For higher timeframe entries (e.g., 1-hour), higher reference frames like weekly and monthly charts would be used.
The concept of "draw on liquidity" involves anticipating where the market is likely to seek out liquidity, such as old highs/lows (external liquidity) or fair value gaps and order blocks (internal liquidity).
Additional signals considered include volume imbalances, price gaps, and the nature of price displacement over highs/lows.
Example Analysis: NQ 4-Hour Chart
Walkthrough of price action after a gap up and aggressive move lower, showing how to follow displacement for bullish or bearish bias.
Price movement through fair value gaps, order blocks, and volume imbalances was used to determine likely targets for price action.
Emphasis on the importance of watching whether price displaces above/below key levels to switch bias and set new targets.
Example Analysis: S&P Futures (Today's Session)
Started with the daily chart to note respect for an order block and presence of a daily fair value gap.
Noted nesting of fair value gaps across 4-hour and 1-hour charts, then down to 15-minute and 1-minute for pre-market action.
Detailed the trade taken: identified a breaker and order block for entry, set stop-loss below a key low, and targeted a logical area just before expected liquidity draw.
Explained how higher timeframe draw on liquidity prevented being shaken out by lower timeframe volatility.
Decisions
Trade entered long at S&P futures order block — Rationale: Bias was supported by higher timeframe draw on liquidity and nested fair value gaps, with a defined risk and logical target.
Open Questions / Follow-Ups
No open questions or follow-up issues were identified during this session.