**The Easiest Draw On Liquidity (DOL) - Daily Bias - ICT — Transcript & Summary | SozAI**
Source: https://sozai.app/transcript/draw-on-liquidity-daily-bias-ict/

ICT-style trading tutorial explaining how to identify the daily draw on liquidity by reading trend, displacement, and previous day highs/lows to set directional bias.

## Key Takeaways

- The previous day's high or low is often the most likely draw on liquidity when price is trending and not consolidating.
- Trend direction and displacement relative to previous day levels together determine daily bias.
- Once the daily draw is identified, lower-timeframe points of interest provide trade entries toward that target.
- Mark previous day highs and lows over a three-day lookback and use fair value gaps and order blocks for added confluence.

## What the video covers

- Introduces the 'easiest draw on liquidity' concept: in a trend, price tends to take the previous day's high (uptrend) or previous day's low (downtrend).
- Consolidations that fail to take either side of the range are excluded from the bias logic.
- Explains how to define a trend: repeated sweeps of previous day highs signal bullish trend; repeated sweeps of previous day lows signal bearish trend.
- Shows that fair value gaps and retracements can interrupt otherwise clean trends and create order blocks.
- Method: on the daily chart, first ask whether price is more likely to reach the previous day high or low, then drop to a lower timeframe to find an entry point of interest toward that target.
- Bias confirmation uses displacement (or lack of it) over or below previous day high/low; failure to displace over the high suggests a downward bias.
- Recommends marking the previous day's high and low over the last three days, and extending these levels for added confluence.
- Walks through several Nasdaq daily chart examples, applying aggressive displacement and close location to decide the target each day.
- Discusses top-down analysis, including new week opening gap and its consequent encroachment as a level price may reject from before expanding to previous day high.
- Notes that the presenter focuses only on previous day highs/lows as targets in examples, while live trading also considers extensions beyond them.

## Chapters

1. 00:00 Introduction to the Easiest Draw on Liquidity
2. 01:15 Defining Bullish and Bearish Trends
3. 02:31 Using the Daily Chart to Frame Draw on Liquidity
4. 03:37 Displacement and Bias Confirmation
5. 04:35 Marking Previous Day Levels and Confluences
6. 05:30 Daily Chart Nasdaq Examples
7. 08:00 Top-Down Example with Weekly Opening Gap
8. 10:20 Intraday Session Example and Wrap-Up

Answers

## Questions about this video

What is the easiest draw on liquidity according to this video?

The presenter says price is usually drawn to the previous day's high in an uptrend and the previous day's low in a downtrend, unless it is consolidating without taking either side of the range.

How do you determine the daily bias?

Ask whether price is more likely to reach the previous day high or low, using the overall trend and whether displacement occurs over or below those levels; failure to displace over the high suggests a downward bias.

How many days back does the presenter look for previous day highs and lows?

The presenter looks back three days and marks out the previous day high and low for each of those days, which can add confluence when extended.

## Full Transcript — Download SRT & Markdown

00:04

Speaker A

how's it going everyone? This video is going to be over the easiest draw on liquidity, and it is generally present almost every day in the market. Now, before we begin, I'd like to give a shout-out to the MXM Trader for his teachings.

00:22

Speaker A

so let's get into it now unless price is going to remain in a consolidation as shown here where it fails to take out either side of the range it is going to reach for previous day high or previous

00:34

Speaker A

So let's get into it. Unless price is going to remain in a consolidation, as shown here, where it fails to take out either side of the range, it is going to reach for the previous day high, the previous day low, or both. Knowing this, if I stay out of consolidations, and if price is trending up, I can anticipate the previous day high being taken. And if price is trending down, I can anticipate the previous day low being taken. So let's hop into the charts and look at a few examples of this.

00:47

Speaker A

the charts and look at a few examples of this so the easiest way to define a trend is in a bullish Trend price will continue to take previous day's High over and over again and in a bearish trend price will take previous previous

01:00

Speaker A

The easiest way to define a trend is this: in a bullish trend, price will continue to take the previous day's high over and over again, and in a bearish trend, price will take the previous day's low over and over again. Here we can see we have PD arrays supporting price higher, so I'd anticipate price to keep reaching for the previous day's high. If we go ahead and mark this out, you can see the previous day high has been reached, and it has been reached again, and again, and you can see how it continues over and over. That is how you know we are trending upward.

01:15

Speaker A

day high has been reached continue this previous day high has been reached again previous day high has been reached again and you can see how it continues over and over again and that is how you know we are trending upwards so let's

01:33

Speaker A

Let's take a look at when price is trending down. Here you can see price has been trending down, and if we anticipate this to continue, we'd like to see previous day lows being run out. As we continue ahead, you can see we took out our previous day low, as well as these lows here. Here we do not take out this previous day low. What do we have? We have a fair value gap here, so we could reach into here before moving lower. So here we get a retracement. Now we get a down-close candle respecting the consequent encroachment of this fair value gap. So now we mark out our previous day low, we reach for our previous day low, and if we expect this to continue, we'd want to see price continue to take previous day lows.

01:44

Speaker A

ahead here you can see we took out our previous day low as well as these lows here here we do not take out this previous day low what do we have we have a fair value Gap here so we could reach

01:57

Speaker A

It's not always going to be such a clean trend down. For example, if we get retracements or liquidity sweeps here, we're going to have a series of up-close candles creating order blocks.

02:12

Speaker A

low and if we expect this to continue we'd want to see price continue to take previous day lows now it's not always going to be so clean of a trend down for example if we get retracements or liquidity sweeps

02:31

Speaker A

Now that you understand that when price is trending up we are likely to see previous day highs being taken, and when price is trending down we are likely to see previous day lows being taken, let's hop back into the PDF and explain how to use this. When I get into the daily chart, the first question I ask myself is: is price more likely to reach the previous day high or the previous day low? If I can answer this question, I then have a draw on liquidity and a target, and I can look to frame an entry on a lower time frame. For example, here, if price is going to be reaching for the previous day low, I can drop down to a lower time frame and look to find a point of interest to frame a trade toward that previous day low.

02:42

Speaker A

likely to see previous day's lows being taken let's hop back into the PDF and explain how to use this when I get into the daily chart the first question I ask myself is price more likely to reach previous day's high or previous days low

02:55

Speaker A

Besides looking at the overall trend to determine if I want price to reach for the previous day high or low, there are a few other ways I can do this. I cover this in depth in my daily bias video, but we will go over it quickly so you know what I'm talking about. What I focus on is displacement, or a lack of displacement, over or below the previous day's high and low. For example, here, when we fail to displace over the previous day high, that gives me a downward bias, looking for the previous day low. Similarly, when we fail to displace below the previous day low, it gives me a bias to reach back into the range.

03:06

Speaker A

previous day's low I can drop down to a lower time frame and look to find a point of interest to frame a trade towards that previous day's low now besides looking at the overall trend to determine if I want price to reach for

03:19

Speaker A

A quick example here: we have the previous day high, we fail to displace over it, and a reversal is framed there. The next day, we can anticipate the previous day low being the drawn liquidity. Then, since this candle displaced below these lows, I'm anticipating a continuation of the trend, so for the next day, price is reaching for this previous day low. Now here, a reversal is framed. We can't displace below this low, so then I want to see the previous day high. On this day, we close over the previous day, and I'd want to see the previous day high once again, as shown here.

03:29

Speaker A

what I focus on is displacement or a lack of displacement over or below previous day's high and low so for example here when we fail to displace over previous day's high that gives me a downwards bias looking for previous

03:43

Speaker A

I cover this more in depth in my daily bias video, like I said, but I wanted to show you how I use the daily chart to frame drawn liquidity. The last thing I'm going to touch on is how many days I will look back for the previous day's high and low, and for me that is three days. For example, here, if I'm on the current day, I will look back three days and mark out the previous day's high and low. Similarly, over here, current day, last three days, mark out the high and low. Marking these out and extending them can also add some confluences. For example, here, when we deviate below this previous day low and come back into the range, we retest this previous day low before continuing higher. If you've watched my box setup video, you know what that looks like.

03:58

Speaker A

then the next day we can't anticipate at previous day low being the drawn liquidity and then since this candle displaced below these lows I'm anticipating a continuation of the trend so for the next day to be reaching for

04:11

Speaker A

So let's hop into some examples. Here we are on the Nasdaq's daily chart, and we are going to go through some examples. We will first go through the daily chart and find our bias for each day before dropping down to a few lower time frame examples. In these examples, I'm going to focus only on using the previous day high or low as my target. However, when I'm actually watching price, I will look for extensions beyond and below the previous day high and low.

04:25

Speaker A

shown here now I cover this more in depth in my daily bias video like I said but I just wanted to show you how I use the daily chart to frame a drawn liquidity the last thing I'm going to

04:35

Speaker A

Here we have a very aggressive displacement higher, so I'd be looking for the previous day high to be taken. Here we take the previous day high, close over it, and I'd want to see the previous day high be taken once again. Here we take the previous day high, displace over this fair value gap and over the previous day high, so I'd want to see that taken once again. Here we close over, so I'd want to see the previous day high being taken once again. Here we take the previous day high and low, we close bearish, and we also reach into this daily fair value gap. With this in mind, I'd want to see price reach for this previous day low. Here we get aggressive displacement below the previous day low, so I'd want to see price reach for this previous day low. Here we get an up-close candle, but my idea hasn't changed, because we reached into this daily fair value gap and displaced lower. I'm wanting to see lower prices and reach for these equal lows. With that idea in mind, I'd want to see the previous day low and this prior low as well. Here we do reach for this previous day low and the prior day low as well, and we close back into the range.

04:46

Speaker A

will look back 3 days and Mark out the previous day's high and low similarly over here current day last 3 days Mark out the high and low and marking these out and extending them can also add some confluences for example here here when

05:00

Speaker A

Now, if you've watched my daily bias video, this is where you might get confused and be looking long. However, with the structure being bearish, I ideally want to see price close below this up-close candle, and what would that do? It would validate it as an order block. So let's see what the next day does, but ideally price reaches lower and closes below here. Here you can see we reach lower. We don't close below the previous day low, but we do aggressively move lower and close below this up-close candle, validating it as an order block. With that idea in mind, I'd want to see price reach lower once again. Here you can see we retest that up-close candle and reach lower. I'd want to see the previous day low again, displacing lower, and there we go, this displaces below this low and closes back inside. Ideally, I'd want to see price reach up to this previous day high or get some sort of consolidation after running these lows.

05:14

Speaker A

here we are on nasdaq's daily chart and we are going to go through some examples we will first go through the daily chart and find our bias for each day before dropping down to a few lower time frame

05:24

Speaker A

Even though I had a bias for almost every day here, it does not mean that I will find an entry each and every day. So let's go back to this Monday and see how it would play out, and then look into the next couple of days. Here I have marked out our new week opening gap and the consequent encroachment of that, as well as our previous day high, which we noted in the last part as our drawn liquidity for this day. Let's see what happens as we come into the New York open. As we come into the New York open, here you can see we

05:38

Speaker A

aggressive displacement higher so I'd be looking for previous day high to be taken here we take previous day high close over and I'd want to see previous day high be taken once again here we take previous day high displace over

05:53

Speaker A

this fair value Gap and over previous day high so I'd want to see that taken once again here we close over so I'd want to see previous day high being taken once again here we take previous day high and

06:08

Speaker A

low we close bearish and we also reach into this daily fair value Gap so with this in mind I'd want to see price reach for this previous day low here we get aggressive displacement below previous day low so I'd want to

06:24

Speaker A

see price reach for this previous day low so here we get an up close candle but my idea hasn't changed because we reach into this daily fair value Gap and displace lower I'm wanting to see lower prices and reach for these equal lows so

06:38

Speaker A

with that idea in mind I'd want to see previous day low and this prior low as well so here we do reach for this previous day low and the prior day low as well and we close back into the range

06:50

Speaker A

now if you've watched my daily bias video this is where you might get confused and be looking long however with the structure being bearish I ideally want to see price close below this up close Clos candle and what would

07:01

Speaker A

that do it would validate it as an order block so let's see what the next day does but ideally reach lower and close below here so here you can see we reach lower now we don't close below previous day

07:14

Speaker A

low but we do aggressively move lower and close below this up close candle validating it as an order block so with that idea in mind I'd want to see price reach lower once again here you can see we retest that up

07:27

Speaker A

close candle reach lower I'd want to see previous day low again once again displacing Lower would want to see previous day low and there we go this placees below this low closes back inside so ideally I'd want to see

07:45

Speaker A

price reach up to this previous day high or get some sort of consolidation after running these lows so even though that I had a bias for almost every day here it does not mean that I will find an entry each and

08:00

Speaker A

every day so let's go back to this Monday here and see how it would play out and then look into the next couple days so here I have marked out our new week opening Gap and the consequent encroachment of that as well as our

08:13

Speaker A

previous day high which we noted in the last part as our drawn liquidity for this day so let's see what happens as we come into the New York open so as we come into the New York open here you can see we Consolidated

08:31

Speaker A

through Asia and London and then we manipulated down here so seeing this as accumulation manipulation I'd want to see distribution higher into this previous day high so let's go down to a lower time frame and see if we can find

08:45

Speaker A

an entry so if you've seen my box setup video you know that price could reach back into this deviation here before moving higher but what do I see here I see a 5 minute fair value Gap so looking

08:56

Speaker A

to enter on the fair value Gap I stop in the the low and then targeting this High I have a risk to reward of just about 2 R so letting this play out and there we go you can see price

09:18

Speaker A

reached a little bit lower it reached into this deviation of this range before reaching higher it rejected off of this new week opening Gap consequent encroachment before expanding into our previous day high so there is an example of going top down so let's go to the

09:34

Speaker A

next day and see if we can find anything else so taking a look at the next day we will Mark out our previous day high and then go down to the lower time frames so here we are on the lower time frames

09:43

Speaker A

with our previous day high marked out so let's see what happens as we move forward in time so you can see the Asia session already took out previous day high so just using previous day high or low to

09:56

Speaker A

frame a Target and a drawn liquidity with that already being taken in the Asia session I am not interested into the New York session let's let it play out and see what happens and you can see we get a

10:09

Speaker A

continuation of order flow up into the New York am session so let's go to the next day so here we are on the next day I've marked out our previous day high which I'll be using to frame a drawn

10:20

Speaker A

liquidity let's see what happens as we move into London session so you can see here London doesn't really do a whole lot kind of consolidates takes this High moves lower takes its initial low so let's see what happens here as we move towards the New

10:39

Speaker A

York am session so here we move a little bit higher and that is 8:30 news which manipulates down so now if we're going back to our first example accumulation we manipulate down where would we want to see distribution opposite of our

10:58

Speaker A

manipulation in to previous day high so it looks something like this so let's go take a look at the lower time frames and see if we can find anything so here we are on the lower time frames and it's a

11:08

Speaker A

little bit easier to see that accumulation news manipulation and then now anticipating distribution into previous day high so let's take a look and see if we can gain an entry to this ideally I'd want to see a close below

11:20

Speaker A

this 830 opening price and this series of down Clos candles here so let's see what happens and there we get a close below this so just in terms of risk to reward and using the Box setup I'd want to see a

11:38

Speaker A

retest of this manipulation before reaching higher into this distribution and previous day high so let's see what happens and there we go we reach and hit our previous day high completing our AMD so let's go take a look at the next day

12:00

Speaker A

so here we are on the next day and I want to see price reach for this previous day high let's drop down to the lower time frames and see what happens so here we are on the lower time frames

12:09

Speaker A

and we have our previous day high marked out so let's see what happens here you can see at the start of the Asia session we already took that previous day high so just watching for previous day high and low as targets I'm

12:24

Speaker A

not going to be watching the following sessions however let's see how it plays out and you can see overall it was a pretty choppy session prior to reaching into this daily fair value G here I hope you found this video helpful and insightful

12:40

Speaker A

in regards to draw on liquidity and daily bias and that it showed you that even with daily bias or a clear draw liquidity it's not always possible to get an entry now if you did enjoy this video please consider liking and

12:52

Speaker A

subscribing and I'll see you guys next time

Topics: ICT draw on liquidity daily bias previous day high previous day low displacement fair value gap order block Nasdaq top-down analysis

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