A trader explains how to spot fair value gaps and liquidity pools across daily, 4-hour, and 15-minute charts to time entries. The strategy targets a 200-point move on the NASDAQ by waiting for price to retrace into an unfilled liquidity zone before going long.
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. It's 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.
