Introduction
Every trader eventually realizes that the true edge isn’t in constantly switching systems,it’s in mastering one. After three years of trading this framework, I’ve refined it into a simple, repeatable process built around liquidity, timing, and disciplined execution. In this blog, I’ll walk you through exactly how the strategy works, what I look for, and why each step matters.
The Foundation: Why This Strategy Works
This approach revolves around liquidity runs, market timing, and reading displacement on lower timeframes. Instead of chasing indicators or new setups, the focus is on understanding where price wants to go. Once you’ve identified that draw on liquidity, everything else becomes clearer.
Waiting for 9:30 or Scheduled News
The first step is simply to wait for volatility. Either the 9:30 AM NY open or scheduled economic news will inject volume into the market.
A volatile open creates:
A run on a prior high or low
A short-term imbalance
A clean starting point for directional bias
Without volatility, you’re just guessing.
Finding the Draw on Liquidity
This is the core of the strategy. Your draw is where price is most likely to reach next. Some of the best liquidity targets include:
Previous day high or low
Previous session high or low
Equal highs or equal lows
Clean, untouched swing points
These areas can act as both targets and points of interest (POIs) for entries.
For example, if you’re targeting the previous day’s high and price sweeps a London low first, the market has likely created the path for a move toward that higher liquidity.
Identifying Points of Interest
After determining the draw, the next step is locating the exact spots where a reaction is likely. These may be:
Fair value gaps
Session highs or lows
Equal highs or lows
Hourly imbalances
POIs give structure and context. They help determine where you expect a stop run and displacement.
Waiting for a Stop Run at the POI
This is a key step that requires patience.
A valid stop run includes:
A short-term high or low taken
Inside or near your POI
Followed by displacement in the opposite direction
This signals that the market has likely rebalanced one side of the book and is preparing to move toward your draw.
Using a Breaker or IFVG for Entries
Your entry model should come after the stop run. You want clean displacement and a valid structure shift.
Common entry triggers include:
Breaker block
Inversion fair value gap (IFVG)
Starter position if no breaker forms
A starter position simply allows you to participate if the market moves quickly and doesn’t give a cleaner pullback.
Taking Profit at 2R or the Draw on Liquidity
Most trades are closed at:
A 2R reward
orThe identified liquidity target
If the model forms cleanly, the draw is often reached.
The Profitable Model Plus Not Doing Anything Dumb
This is the hardest part and often the difference between traders who succeed and those who don’t.
You might get a clean setup on Tuesday and not see another until Friday. The losing traders are usually the ones who fill the gaps with impulse trades, revenge trades, or forced setups.
If step two (finding the draw) isn’t clear, you simply don’t trade. No draw means no direction. And no direction means no trade.
Example Breakdown: A Clean Liquidity Run Day
In the chart example:
One-hour equal lows acted as the obvious draw on liquidity
Price traded inside a one-hour fair value gap
Fifteen-minute and five-minute displacement showed bearish intention
A short-term high was swept
A breaker formed for entry
Price delivered straight into the liquidity pool
After hitting that target, price reversed cleanly from the same draw. Later, equal highs formed the next draw, offering a long setup from London low.
Once you understand where the market is reaching, setups appear with far more clarity.
Building Confidence Through Screen Time
The ability to pyramid, refine entries, or scale in comes only through repetition. Advanced concepts aren’t needed in the beginning. Start simple:
A draw
A stop run
Displacement
A clean entry model
Everything else develops naturally over time.
The Final Analogy
You don’t need a sports car to reach your destination. A basic vehicle gets you there too. Breakers, IFVGs, or starter positions are just different vehicles. What matters most is knowing where you’re going.
If you have direction, the entry method becomes a matter of preference, not necessity.