A trader explains how to spot liquidity pools on the NASDAQ by analyzing fair value gaps across daily, 4-hour, and 15-minute charts. When price retraces into an unfilled gap without fully repricing the swing low, you can enter long with a high reward-to-risk ratio and potentially capture around 200 points.
And the easy way to find the drawn liquidity on these days is that price is jagged on one end. Let's say this is a daily fair value gap or, and it took out previous day high. We're having a 15-minute timeframe shift here, you know, then there's a retracement into a 15-minute fair value gap. Point is here, we already had that shift downwards down here. Maybe there's a 4-hour internal liquidity in a discount, which we're gonna go for next because this leg back down, we never actually retraced to equilibrium of the range. And this I really like as potential liquidity pool, even if it does this previous swing low did actually reach into it but didn't completely fill it. But we took out this high into that fair value gap. This is a drawn liquidity. This is a short-term low with more liquidity beneath it because we didn't actually completely reprice this here. Then I'm looking for the price to come all the way back down here and I'm entering up here and like, that's an amazing RR situation. It'll get you like 200 points, you know, on the NASDAQ, which is fun.
