Ict Draw on Liquidity Calculator
Calculate the draw on liquidity targets above and below current price for ICT directional bias.
Reviewed by Daniel Agrici, Founder & Lead Developer
Formula
DOL Bias: Premium (price > equilibrium) targets SSL; Discount (price < equilibrium) targets BSL
Equilibrium = (High + Low) / 2. Premium zone is above equilibrium where smart money sells. Discount zone is below equilibrium where smart money buys. Price draws toward liquidity pools (stop orders) above swing highs (BSL) or below swing lows (SSL).
Worked Examples
Example 1: EUR/USD London Session DOL Analysis
Problem:EUR/USD current price: 1.0850. Daily high: 1.0920, Daily low: 1.0780. Previous day high: 1.0900, Previous day low: 1.0800. Asian session: 1.0830-1.0870. Determine the likely DOL target.
Solution:Daily equilibrium = (1.0920 + 1.0780) / 2 = 1.0850\nPrice is exactly at equilibrium\nBuyside targets: Asian high 1.0870 (20 pips), PDH 1.0900 (50 pips), Daily high 1.0920 (70 pips)\nSellside targets: Asian low 1.0830 (20 pips), PDL 1.0800 (50 pips), Daily low 1.0780 (70 pips)\nNearest BSL: Asian high at 1.0870 (20 pips)\nNearest SSL: Asian low at 1.0830 (20 pips)
Result:Neutral bias at equilibrium | Nearest BSL: 1.0870 (20 pips) | Nearest SSL: 1.0830 (20 pips)
Example 2: GBP/USD Discount Zone Buy Setup
Problem:GBP/USD at 1.2640. Weekly range: 1.2600-1.2800. Daily range: 1.2620-1.2720. PDH: 1.2700, PDL: 1.2650. Asian range: 1.2635-1.2660. Identify bias and DOL.
Solution:Weekly equilibrium = (1.2800 + 1.2600) / 2 = 1.2700\nDaily equilibrium = (1.2720 + 1.2620) / 2 = 1.2670\nPrice at 1.2640 is in discount zone (below both equilibria)\nBias: Bearish (below all equilibria but discount suggests buy potential)\nBuyside targets: Asian high 1.2660, PDH 1.2700, Daily high 1.2720, Weekly high 1.2800\nPrice in discount favors DOL toward buyside liquidity
Result:Discount zone | DOL likely buyside | Weekly high at 1.2800 is ultimate target
Frequently Asked Questions
What is Draw on Liquidity (DOL) in ICT trading?
Draw on Liquidity (DOL) is an ICT (Inner Circle Trader) concept that describes the tendency of price to move toward areas where resting orders accumulate, known as liquidity pools. These pools form above swing highs (buyside liquidity or BSL) where buy stop orders rest, and below swing lows (sellside liquidity or SSL) where sell stop orders rest. The DOL concept suggests that institutional traders (smart money) intentionally drive price toward these liquidity pools to fill their large orders. Understanding which liquidity pool price is likely targeting helps traders anticipate directional bias and identify high-probability trade setups in forex, futures, and other financial markets.
What is buyside liquidity and sellside liquidity?
Buyside liquidity (BSL) refers to clusters of buy stop orders resting above significant swing highs, equal highs, or resistance levels. When price sweeps above these levels, it triggers these buy stops, providing liquidity for institutional sellers. Sellside liquidity (SSL) refers to clusters of sell stop orders resting below significant swing lows, equal lows, or support levels. When price drops below these levels, it triggers sell stops, providing liquidity for institutional buyers. In ICT methodology, price is always drawn toward one of these liquidity pools, and identifying which pool price is targeting gives the trader a directional bias for the trading session or day.
How do you determine which liquidity pool price will target?
Determining the DOL target involves multiple confluences. First, assess where price is relative to the daily and weekly range equilibrium (50 percent level). If price is in the discount zone (below equilibrium), it is more likely to draw toward buyside liquidity above. If in the premium zone (above equilibrium), it tends to draw toward sellside liquidity below. Second, consider the higher timeframe trend and order flow. Third, note which session you are in (London, New York, Asian) as each has characteristic behaviors. Fourth, look at displacement (strong impulsive moves) which signals institutional intent. Fifth, previous day bias and weekly profile context help confirm the expected DOL direction.
What is the premium and discount concept in ICT trading?
The premium and discount zones divide a trading range into two halves at the equilibrium (50 percent) level. The premium zone is the upper half, above equilibrium, where price is considered expensive relative to the range. The discount zone is the lower half, below equilibrium, where price is considered cheap. ICT teaches that smart money prefers to sell in premium zones and buy in discount zones. When price is in the premium zone, the DOL bias shifts toward sellside liquidity (targeting stops below), while price in the discount zone biases the DOL toward buyside liquidity (targeting stops above). This concept applies across all timeframes from the weekly range down to intraday ranges.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy