The previous day high and previous day low are the best draws for liquidity.

The video emphasizes the significance of daily candles in identifying the previous day's high and low, which represent the highest possible draws on liquidity. Traders can use these levels to anticipate price movements.

When price pushes higher from the opening price, traders can anticipate it reaching the previous day's high. From there, they can look for a reversal that would lead towards the previous day's low, making this a potential target.

A trader's role is to capitalize on the higher time frame wick created in the manipulation area. The video illustrates how price action can move higher, then break lower, leaving behind inefficient price action.

The concept of a 'dealing range' is introduced, where price sweeps liquidity. By measuring this range, traders can look for price to retrace into a 'premium area' for a trade opportunity, with the previous day's low as the target, after sweeping the previous day's high.