0:06 foreign
0:07 guys welcome I'm sorry for the late
0:11 video hopefully some of you guys are
0:13 still awake if not I'm sorry this is
0:15 coming to you guys late
0:17 um I have had zero hours of sleep
0:21 um I'm in Miami obviously
0:23 um and I'm still going to keep my
0:26 promise of uploading a video every
0:27 single day I wish I could take a nap
0:29 right now but I'm not going to let
0:30 myself do that because you guys have
0:32 to learn and
0:35 that's what we're here for so with that
0:37 being said let's just jump right on into
0:40 it okay I believe today hold on actually
0:44 I I don't want to get this wrong
0:47 I believe today is fair value gaps part
0:49 two
0:51 let me double check the the YouTube
0:52 channel for a second
0:58 yes let's go okay today is
1:01 um is identify or sorry fair value gaps
1:04 part two okay so today we're going to be
1:06 talking about how we can identify them
1:09 um and then also you know like showing
1:10 how you could potentially take a trade
1:12 or really today's just going to be
1:14 identifying and then day three is going
1:16 to be how you can take trades and how
1:17 you can put it together with liquidity
1:18 sweep breaker structure Bing Bong boom
1:21 all that stuff today is literally just
1:23 going to be identifying them
1:24 understanding what they're used for
1:25 doing a little bit recap of that
1:27 um should be relatively quick should be
1:29 relatively easy so um with that being
1:31 said let's jump right into it so we'll
1:33 first do a quick little summary also
1:35 please forgive me if I you know mess up
1:38 like I I literally I've gone
1:41 almost like 48 hours with no sleep
1:44 um and obviously my voice is gone and
1:46 I've been doing a bunch of stuff so if I
1:47 if I mess up bear with me anyways
1:51 um uh what was that what was it yeah
1:53 let's let's jump right into it okay so
1:55 first we'll do a quick little recap what
1:57 are fair value gaps what are liquidity
1:59 voids what are imbalances it's literally
2:01 where there is a lack of liquidity
2:03 meaning there are no resting orders in
2:05 the opposite in the opposite direction
2:06 of wherever price wants to go so with
2:09 that being said right price comes down
2:11 into that liquidity void into that
2:13 imbalance into that for Value Gap where
2:15 there are no right resisting orders and
2:18 then we can place more orders but Market
2:20 is going to move and Market is going to
2:21 react why because there was a lack of
2:23 liquidity within that area that gives us
2:26 the opportunity and the ability to you
2:29 know take a
2:30 take uh sorry move the market oh I can't
2:34 dude I'm sorry
2:36 um messing up but more focused all right
2:39 so with that being said right we
2:41 understand that okay fair value gaps are
2:43 essentially a liquidity void within the
2:45 market where Market will probably draw
2:47 to and then react off of in that
2:49 essentially what it is it's literally
2:51 just an imbalance a liquidity void price
2:53 draws back down into that why because
2:55 there's no resting sell orders there's
2:56 no resting buy orders in the opposite
2:59 direction of wherever the price is
3:00 trending which in turn makes fair value
3:03 gaps a retracement
3:05 um a retracement tool essentially it
3:08 helps you find trades off of
3:09 retracements and as we start getting
3:10 deeper into this we'll start explaining
3:13 you know all that about how you can
3:17 um how you can you know use these but
3:20 something to note
3:22 fair value gaps are not reversals fair
3:26 value gaps are not used for reversals so
3:29 if we see Market trending higher and
3:30 higher
3:32 if we see Market going higher higher
3:33 higher higher right breaking higher
3:35 highs and higher lows
3:39 we see market doing that
3:41 we are looking for fair value yet we are
3:43 looking for bullish fair value gaps okay
3:45 and we'll talk about where to find them
3:46 but in this case right we're bullish so
3:49 what are we looking for we're not
3:50 looking for bears for Value gaps to turn
3:52 price around we're looking for
3:53 retracements into these bullish for
3:56 Value gaps for reactions
3:59 okay and continuations that's
4:01 essentially what this what fair value
4:03 gaps and equilibrium are used for it's
4:05 continuations and retracements okay so
4:08 with that being said now let's talk
4:10 about how we can identify them fair
4:12 value gaps are essentially or imbalances
4:13 are essentially a three candle pattern
4:15 the first candle okay which looks like
4:19 this shrink okay and then the second
4:22 candle which is the candle that creates
4:24 the imbalance essentially
4:25 will be like super full like this and
4:27 then the third candle which
4:30 looks a little something like this okay
4:34 and
4:36 a fair value Gap looks something like
4:38 this
4:46 okay so what is the area of fair value
4:49 what is the area that has not been
4:52 filled right that didn't have any you
4:54 know
4:55 um resistance um resting orders right we
4:57 see this right and we'll show examples
4:59 of this on the chart but we see this
5:01 candle right massive up candle right and
5:05 no resistance in between and and how do
5:07 we know there's no resistance through
5:09 the Wicks okay so this is a three candle
5:10 pattern and essentially we find the
5:15 liquidity void we find the you know area
5:17 and price range of fair value by
5:19 measuring it off of in in for for
5:23 bullish fair value gaps it's from the
5:25 top
5:26 of the first candle's wig to the bottom
5:30 of the third candle's Wick and then you
5:33 know you draw your box or whatever your
5:36 Gan box
5:37 your rectangle
5:39 you draw it right just like that boom
5:42 from here up to there wait for price to
5:44 fill wait for price to react so now my
5:47 shitty ass drawings can get removed and
5:49 we can actually see this happening on
5:52 the charts and you know like actually
5:53 see what it looks like so this is a
5:56 perfect example okay we get a breaker
5:58 structure we're confirmed bullish now
5:59 okay we know that we're bullish okay
6:01 what is this we have a massive candle
6:05 with no right look this no Wicks no
6:09 Wicks filling this so what does that
6:11 make this a fair value Gap right there
6:13 is a liquidity void what does price do
6:14 draw into it chop chop chop break
6:16 structure rally okay perfect example for
6:20 Value Gap getting used boom bullish
6:25 right bullish for Value Gap rally okay
6:28 it's actually very easy to spot these in
6:30 the market you literally just look for
6:32 you know areas that do not have do not
6:36 have Wicks covering in that covering it
6:37 so for this one for example
6:39 [Music]
6:41 sorry this one for example we have boom
6:45 right from a bearish gap we have it from
6:49 the bottom of the first candles Wicks to
6:52 the top of the third candle's Wick like
6:55 this right we can see boom bottom of
6:57 this candle's wig to the top of this
6:59 candle's wig we see price come in chop
7:02 chop chop fill drop
7:04 okay right how do we know it's going to
7:06 be bearish we had a breakup structure
7:07 right here confirming a bear's bias what
7:09 were you looking for we're looking for
7:11 retracements okay we retrace onto this
7:13 into this fair value Gap we continue
7:14 lower
7:15 this is as easy as it gets this should
7:18 be one of the easiest Concepts to to use
7:20 however because it is such a freaking
7:24 easy concept to use
7:26 you have to understand that it is it
7:29 isn't necessarily
7:31 as valuable as you may think okay so
7:37 you you can you can find these literally
7:40 every single every everywhere on charts
7:43 right we could you know oh for Valley
7:45 Gap right here we have her value Gap
7:50 right here we have everybody Gap
7:55 right here right and the issue that I
7:57 have with this is when people execute
8:00 purely off of just the fair value Gap
8:02 getting hit and without a reaction wait
8:04 for a reaction or scale down to a lower
8:07 time frame see a breaker structure see a
8:10 change in Market structure shift or just
8:12 a reaction like with a bullish candle or
8:13 a bearish candle whatever Direction
8:15 you're trying to see it go and let that
8:18 be your confirmation to enter okay be
8:20 very patient with these because they're
8:22 all over the chart and it's really easy
8:24 to get kind of caught up in them and be
8:26 like oh they're probably got pair if I
8:28 probably got pair all these are going to
8:30 work and it's like no they aren't okay
8:31 they not all of them are going to work
8:33 and that's why we have to wait for
8:34 confirmation that's why we have to wait
8:36 to see if there's a reaction that's why
8:37 we wait to see on a smaller smaller time
8:39 frame if there's a break of structure
8:41 make sense
8:43 cool
8:45 um
8:46 I don't really I'm trying to think what
8:49 what else we have I mean today's
8:50 homework you are going to be going on
8:53 whatever pair you choose right whatever
8:54 one pair that you're going to be trading
8:56 on
8:57 um and you are going to be
8:59 you are going to be
9:01 um identifying 10 fair value gaps within
9:04 the market and then you know creating
9:07 kind of like a
9:09 hypothetical way that you would trade it
9:11 right so like this we see that breaker
9:13 structure the downside we know that
9:15 price is falling okay yeah we have this
9:18 fair value Gap within here
9:20 right we have this for Valley Gap we see
9:22 price fill close bearish right here okay
9:24 perfect now we can enter a stop above
9:26 the previous High Target previous lows
9:28 right simple as that but again we're not
9:31 even we're not even at the point of of
9:33 being able to execute yeah we're still
9:36 putting the pieces together so that's
9:37 really all
9:39 fair value gaps are and it's it's a
9:41 three candle pattern the first candle
9:44 okay the first candles Wicks do not
9:47 match or do not fill the second candle's
9:51 body and the first and third candles
9:54 Wicks do not fill
9:57 the second candle's body so let's say
9:59 this is the body
10:01 if we have
10:04 Wick from this candle and then Wick from
10:07 this candle let's just say these are
10:09 candles
10:16 okay there we go boom this is not a fair
10:19 value app why because price already came
10:21 within here
10:22 filled the liquidity void
10:24 right there's nothing else to do in here
10:26 and and these Wicks show hindering
10:28 orders these these Wicks show resting
10:30 orders
10:31 pretty much proving that
10:34 um you know this pretty much proving
10:36 that okay there's there's no lack of
10:38 liquidity here it's been filled so
10:40 that's something that I want you guys to
10:42 do as well be able to know where there's
10:44 no fair value Gap is this a fair value
10:46 Gap no why because we're looking
10:49 for a bullish for Value Gap we take it
10:51 from the top Wick the top Wick of the
10:54 first candle okay to the bottom Wick of
10:58 the
10:59 to the bottom Wick of the third candle
11:00 in terms of a bullish order blog look
11:02 this oh sorry bullish um fair value yep
11:04 look this is this is not a fair value
11:06 Gap because we took it from
11:08 this the high of this Wick down to the
11:11 low of this week and nope is not gonna
11:13 work definitely not gonna work okay so
11:16 with that being said I understand and
11:19 know the difference between ones that
11:20 are not real you know you should easily
11:22 be able to identify these right we just
11:24 showed it perfectly remember it's a
11:26 three candles pattern we're using the
11:28 Wicks of the first candle along with the
11:30 third candle and we're using the second
11:32 candle to pretty much show
11:35 the imbalance right we have this candle
11:38 this is a perfect example this candle
11:41 this candle is candle number one we take
11:42 it from the bottom Wick in terms of a
11:45 bearish fair value Gap we take it from
11:47 the bottom Wick right which is right
11:48 here down to the third candle's top Wick
11:51 which is right here okay the second
11:53 candle is the imbalance okay perfect we
11:55 see price rally up on in there
12:01 scale down to the lower time frame boom
12:04 you see breaking structure Young Money
12:05 militia
12:06 that's how we can execute okay so with
12:09 that being said get your homework done
12:11 make sure you identify these and then
12:13 also be able to identify the ones that
12:15 are not even real so you can actually
12:18 get comfortable with understanding you
12:19 know which ones are right and which ones
12:21 are wrong oh man yeah that's pretty much
12:24 it um I'll see you guys tomorrow for a
12:25 nice little psychology Zoom
12:28 um I'm really excited for it peace out
12:31 um also hopefully I can get some good
12:32 night's sleep before the next video that
12:35 goes up tomorrow okay
Chrome Extension