Proper understanding of narrative & draw on liquidity is the key to using order flow shifts correctly. ๐ฌ๐ผ๐ ๐บ๐๐๐ ๐๐ป๐ฑ๐ฒ๐ฟ๐๐๐ฎ๐ป๐ฑ ๐ฝ๐ฟ๐ถ๐ฐ๐ฒโ๐ ๐ถ๐ป๐๐ฒ๐ป๐๐ถ๐ผ๐ป ๐ณ๐ฟ๐ผ๐บ ๐๐ต๐ฒ ๐๐ผ๐ฝ ๐ฑ๐ผ๐๐ป.
There are only ๐๐๐ผ ๐๐ต๐ถ๐ป๐ด๐ I use as my HTF PDA:
- Fair Value Gaps
- Liquidity Pools
This is truly ALL YOU NEED.
Pick one of the 3 methods to spot an order flow shift, combine it with narrative, draw on liquidity and HTF PDAโฆ BOOM. You have an extremely profitable model on your hands.
I personally just read the FVGโs. I donโt need anything else.
Want to learn more? I go EVEN MORE in-depth on this topic in my latest YouTube video:
For direct access to me, FREE educational content & resources click here:
A FVG is a 3 candle sequence where an imbalance of buyside or sellside forms. The key is that the wicks of the 1st candle and 3rd candle do not touch due to the 2nd candleโs large expansion. This creates a very visible gap.
Fair value gaps can occur on both sides of the market; on buy side and one sell side. FVGโs are also known as BISI and SIBIโs, below is an example.
To arrive at the draw on liquidity consistently we must first understandโฆ
Price is only ever doing 1 of 2 things:
- Seeking liquidity (ERL)
- Offering fair value (IRL)
ERL: External Range Liquidity
IRL: Internal Range Liquidity
Price cycles from ERL โ IRL. IRL โ ERL. ๐
In order to find ERL/IRL, we want to mark out our most recent price range. We do this by marking out the most recent swing low to swing high.. We do not worry about the โoldโ ranges to the left of the chart.
The PD Array Matrix is a hierarchy that provides a structured approach to analyzing price movements and forming directional biases based on key price levels.
Here is a list of the only PD Arrays you need. The order is as follows:ย
- Mitigation Block
- Breaker Block
- Fair Value Gap
- Order Block
- Liquidity Pool
โAlgorithmic theory is based on ๐ฉ๐๐ข๐ & ๐ฅ๐ง๐๐๐. Price levels are useless until time is considered. Time is of no use unless price is at a key pd array. Blending the two yields astonishing results & precision.โ - ICT
When time & price are in agreement; they present extremely high probability trades for us to capitalize on.
Time can be categorized as ๐ ๐๐ก๐ก ๐ฏ๐ค๐ฃ๐๐จ & ๐ฃ๐๐ฌ๐จ.