YouTube Transcript:
Boot Camp Day 14: Fair Value Gaps Pt_ 1

all right this is attempt number two to
make this video
um we are currently in Miami right now
and I recorded this
I recorded this
um out on the balcony but my uh computer
overheated so this is going to be take
two and probably a sloppier version of
it but uh what's good Jets uh welcome to
[ __ ] boot camp day I don't even know
16 or 15 maybe four I have no clue what
day it is
um but yeah we're in this [ __ ] I think
we tapped it what like uh we've stopped
two weeks now right
um but anyways today we're talking about
fair value gaps
um liquidity voids imbalances whatever
you guys want to call them in the market
and most of the time we would do this on
like a little chart but as you guys know
how we've been setting like this whole
[ __ ] up uh for you know this boot camp
I'm pretty much going to split up all
those little building blocks into three
separate videos
um just so you guys have like a chance
to take everything in and like actually
properly understand the [ __ ]
um so today it's literally just gonna be
one-on-one me explaining what fair value
gaps are why we want to use them how we
can understand them in the market to you
know actually be confident in taking a
trade based off of it because for me I
would much rather you know have a uh
take a trade based off of actual like
Market Confluence and orders being
filled and actually seeing that versus
oh it bounced off a floor or like it hit
a ceiling so it's going to go down like
are we being dead ass about that off of
a drawing that you put on chart you know
like I have no hate towards supporting
resistance Traders it just doesn't make
sense to me why you would you know
essentially bet on something
um like that but I mean hey some people
make money doing it this just makes more
sense to me it makes me feel safer about
putting money into the market so with
that being said let's get into fair
value gaps part [ __ ] one boys
um so what is a fair value Gap what's a
liquidity void what's an imbalance it's
literally all of those are pretty much
the same thing so I like to call it just
a liquidity void so similar to how we
talked about liquidity in those past
three trading videos that's where you
know orders are residing that's where
Market wants to Target to take out those
orders to execute those orders at this
certain price point this is quite
literally the opposite this is a void a
price range where there are no no
contradicting orders so if we see a big
move up right why are we seeing that
move up in the first place because
there's no sell orders through that
price range that's the that's the
liquidity void that's the imbalance
that's the fair value Gap same thing to
the downside right if we see a big drop
to the downside with no like hesitation
and it just dumps right that's a
liquidity void that's the imbalance and
why is why is it a liquidity void
because there's literally no no resting
buy orders throughout that massive drop
down if there were resting buy orders
price would go down oh pull up a little
bit go down a little bit more yes maybe
it's bearish and it still closes bearish
but there's still resting buy orders so
this is what
um it helps us do we can actually be
able to spot where there is no liquidity
on the market and if we think about this
logically right when we're within a
trend and price obviously moves with
higher highs and higher lows where are
those higher lows going to draw to where
are those retracements going to draw to
you know probably into those areas that
where liquidity was not before right and
then what's going to happen once we get
into those areas market makers can
execute their orders because they know
right there is a emptiness of liquidity
they know that right when they Place
their orders within there Market's going
to move in their Direction so how is
this beneficial to us how can we you
know we'll talk about how we can spot it
in two days on the next trading video
but why is this beneficial to us one it
helps us accurately kind of understand
okay where does price want to draw to
when it's retracing right fair value
gaps are used for retracements I don't
use fair value gas for
like entries necessarily I use liquidity
sweeps to understand where Market's
going and then I use fair value gaps to
kind of like
figure out where price maybe wants to
draw to or for like a secondary entry
and we'll go into all of that stuff once
we get deeper into strategy but
um this is super useful because we see
price in an uptrend drawing back down
and we can find a liquidity void and
then we see a reaction off of that or
like a breaker structure on a lower time
frame boom like why wouldn't you execute
that because you know there's a lack of
orders lying within there you know the
trend is going up and if you see a
breaker structure on a smaller time
frame after a fair value gap or an
imbalance or liquidity void getting
filled on a larger time frame why
wouldn't you enter there you know that's
literally you know you see okay prices
in this range where there's a lack of
liquidity for opposing orders right if
we're in an uptrend there's no sell
orders laying within here and then we
see a breaker Market structure on a
lower time frame why wouldn't you
execute right doesn't that make so much
sense for you to execute on a trade like
that versus oh price hit
my
[ __ ] ceiling are we being dead ass
right now like let's use our let's use
our brains okay
um so I mean with that being said that's
that that literally is what what fair
value gaps are it's literally just a
lack of orders within the market and
that's what causes the imbalance to be
made the
um the big ass candle right you guys are
and we'll talk about how to spot them in
two days but when you guys like see them
within the market most the time it's a
big candle down why because there's
literally no orders stopping it from
dropping that far down
um same thing with the upside there's no
sell orders within there that's stopping
it from pushing so high up
um and then when price comes back into
that range
right it gives the market makers to you
know the opportunity to keep pushing
price in the direction that they want to
um and again once we start getting all
these pieces it's like you know I'm sure
even after this video you'll you guys
were so we'll start looking into that
even more by just seeing okay we got
liquidity sweep breaker structure we see
the trend starting to form and then okay
now I have a fair value Gap oh I notice
it gets filled smaller time frame break
of structure boom we're in okay and it's
it's literally as simple as that like
that people really make trading a lot
harder than it has to be and you guys
can really [ __ ] simplify it if you
just say okay this is exactly how price
moves you know what do we use for Value
gaps for retracements cool when we see a
retracement in the market figure out
where the imbalance is scale down to a
lower time frame find a break of
structure continuation boom like come on
like that [ __ ] is so easy
um and then you know liquidity sweeps
okay we see liquidity taken out of the
market okay if we see a breakup
structure perfect execute right all of
these building blocks we I pretty much
have the set up so it's like one size
fits all right you can trade this on any
time frame you can trade this
with any [ __ ] pair right you can
literally apply these Concepts to every
Financial Market
um because this is how price literally
moves this is how the market moves and
that's why I love the way that I trade
because you can do this on any time
frame if you can't sit on your computer
for like two hours a day
um you know like scalping or like you
know actually monitoring it you can do
swing trades where it takes several days
to hit
um and as we start adding all the
building blocks you'll start to see like
okay I can use this I can use this and I
don't really understand this so I don't
need it right that's the nice thing
about this all of these are pretty much
execution like pieces and it's just like
which ones you want to use and the more
that you know the better because then
it's like holy [ __ ] now I have like five
different confirmations that I can go
off of that are all very high Confluence
and that are all based off of actually
like Market execution and orders being
filled who wouldn't want to place a bet
on that that's why I love trading
because I can be like okay yeah I'm
actually going to bet on this because I
actually believe in this versus you know
oh like I think it's going to go down
because it you know like hit a ceiling
just [ __ ] don't make no sense
um so with that being said
that's where value gaps explained we'll
talk about how to spot them tomorrow no
homework today
um actually the only homework you have
to do is like do something that's
actually productive
um don't sit around
um I mean if you're watching this video
odds are you're doing something
productive right now but
um do something else after this video so
you watch this video go take notes go on
a run go to the gym do something that's
hard do something that's uncomfortable
trust that's where you grow all right
when you put yourself in uncomfortable
situations that's where the growth
begins and amen I'm still trying to you
know get uncomfortable even while on
vacation we're in Miami right now I very
well could have just said like yo the
Wi-Fi's ass
um I don't want to upload this video but
here I am on vacation making a [ __ ]
video and uploading it on ass Wi-Fi so
um and and then after this it's like
cool now I feel accomplished I feel okay
with myself like I feel proud of myself
I've got something good done for today
and then I can go have my fun like
there's there's a there's a perfect
balance of having fun and actual work
like and to be able to understand that
like if you're working 24 7 that's why I
always say like take one day off if
you're working 24 7 bro you're going to
get burnt out you need a good balance
but it's also like you can't just say oh
yeah I want my balance and then just
like not actually work right there's
there's you know you you know the
difference
um but yeah that being said go do
something fun uh do something productive
and then go do something fun
um I'll see you guys tomorrow when we
talk more about discipline and how we
can you know actually start [ __ ]
whipping your ass into shape because we
know how [ __ ] terrible you guys are
at staying disciplined Within These
markets so hopefully we can start
talking about some tips some tricks some
actual exercises
um for you guys to start practicing to
you know actually get you in mind so
that being said I'll see you boys
tomorrow peace out