A trader shares a simple method for trading around news events: wait for the market to take out a prior low, since liquidity often pools before scheduled announcements. When the market runs those lows, that trapped liquidity becomes your target.
I'm not looking to take an entry until this low is taken. What happens sometimes is market will just do this, respect the low, move away. This whole scenario right in front of us typically occurs. There is news on a Wednesday, could occur on like Tuesday. Why? It's just built liquidity for news the following day. So yes, almost always. I can tell you guys that if we have left liquidity like this, it's going to be either a future target you can sell into or another buy opportunity somewhere down the line. Maybe it's the next day or even the next week, we end up running these lows and then you can look for that buy back up.
