This is a bullish reversal pattern - using the overnight liquidity levels for where buyers may want to step in.
Not all liquidity levels hold to the tick. And catching a falling knife gets traders' accounts killed. However, if we wait for a reversal signal/pattern at a known level where Buyers are sat. We can usually get a good entry.
The pattern happens across all time frames but for those looking to keep risk to a minimum you want to use the smallest time frame possible without being subject to too much noise. Only you will be able to tell your risk tolerance.