Kardec TraderFutures Trader. Creator of The Midas Touch. Mentor

Trade The DRAW On Liquidity (MUST WATCH)🚨

14 Feb 2026 · 1 min

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In this segment, the presenter explains how a price pullback to the 50% level signals a discount and indicates that external range liquidity has been taken out. The market then forms a new trading range, and the next liquidity draw occurs at a point of interest (POI) within that range. While the higher time frame may appear bullish, the speaker advises looking for long entries at the POI but also being ready for short opportunities on lower time frames if a swing failure pattern (SFP) appears, as the drawn liquidity will favor shorts until price mitigates the order block and tags internal range liquidity. The strategy focuses on spotting a higher low within the POI, targeting the previous swing high, and recognizing that this liquidity‑draw cycle repeats continuously.

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So price is now pulled back. We have our 50% line here which means a few things. We're now in a discount here. Well really what happened here is this is external range liquidity that got taken out. Price is now trading higher and we now have a trading range. What becomes the next draw on liquidity. It's that point of interest back within the trading range. So yeah, we want to look to long here but if we're up here and maybe we get some sort of SFP here, our drawn liquidity until we get down to here is for shorts. So even though the high time frame might be bullish, theoretically look for low time frame shorts knowing that price is trying to draw back and mitigate this order block and tag that internal range liquidity. And then of course we're looking for price to create a higher low here within that POI and it just tagged internal range liquidity. What becomes the next target? That old swing high and then this process repeats over and over and over again.