YouTube Transcript:
Boot Camp Day 18: FVG Pt_ 3

welcome welcome
uh welcome to boot camp day who knows
what last day of Our Fair Value Gap
section
um I watched over
the second video and it wasn't as bad as
I thought it was
um so we're going to leave that one
there and then honestly this video there
isn't too much to cover besides kind of
recapping what we talked about in the
first two episodes that's kind of what
the third one is for just a whole recap
and then showing how we can put
everything together with it so um I do
think the second one was good enough and
we'll go a little bit more in detail
today on how we can use fair value gaps
but hey
we know why we want to use fair value
gaps we know why they're beneficial in
the market we know why the market reacts
off of them
um and we also know how to spot them
okay so with that being said today is
pretty much just going to be a quick
overview okay and then kind of putting
it all together how we can you know
actually use them to make money
um and honestly today's trade that we
took was a perfect example of it so
let's Jump Right In you guys
um so to start off okay this is going to
be
this is going to be a lot because we're
starting to put things together now and
it's no longer
this is what a liquidity sweep is it's
what a trend is it's like okay we have a
trend we have a liquidity Suite we have
a break of structure we have a fair
value Gap and now that you have these
Concepts I'm going to move forward as if
you guys unfully understand these things
okay so if you don't fully understand
them that's up to you to go back
re-watch the other videos I've made on
them re-watch the boot camp videos that
I made on them re-watch the old old
videos that I made on these Concepts so
you guys can be up to date remember
there's no there's nothing bad about
putting in extra work
okay so with that being said
here we go
today was a a prime time example of
using a fair value Gap okay so as we can
see here right we were in a small little
uptrend on the S P 500 we then proceed
to break structure on the 15 minute okay
and what do we get left with after this
break of structure
right we see a big imbalance within here
we see this for Value Gap is there a
fair value Gap within here no because
this Wick overlaps with this one is the
they're a fair value Gap within here no
because there's this wig overlaps with
this one this is the only fair value Gap
we saw okay scaling down
where is Market open and we'll talk
about the value that market open gives
us later once we've covered all the
building blocks but
we have Market open right here wait why
is this not right
oh yeah no that was correct we mark it
open right here
okay so we saw that breakup structure on
the 15 minute and then we see price
start to Rally back up into here this is
all during pre-market okay so we see a
tap into there a break of structure it
falls but we're not even looking at this
because we're fast asleep or at the gym
waiting for Market to open okay because
we we're not going to take any trades
that aren't off of Market open
okay or aren't after market open okay so
we see price come into this imbalance
this 15 minute imbalance we see regular
structure here okay rally back up
breakup structure here now okay we come
down make a lower low than this one okay
so we can kind of like confirm that okay
maybe we're trending down now okay and
then we see Market open
and we see a push up into this
another imbalance
within here so what did I do
I scaled down onto the one minute time
frame
and all I was waiting to do because now
we have two confirmations right we have
high time frame breaker structure trench
Trend shift okay then okay we see the
imbalance on the high time frame get
filled what do we do scale down to a
lower time frame boom we see a break of
structure okay now what are we doing
scaling down to an even lower time frame
getting a prime time entry okay we mark
off that five minute imbalance we see it
gets pushed up into here right right as
Market opens okay then we get a break of
structure right here off of this candle
close Okay boom you can enter into short
position off of that I had targets
um at this liquidity down here and then
also at this um little I guess you could
call it an order block right and both of
those take profits ended up getting hit
before the rest of our position got
stopped out at break even so hopefully
with that explanation we'll do a couple
more gives you Insight on how to use
these imbalances remember we are not
entering when these get hit or when or
right we're not entering right when like
price pushes up into here because right
if we did that right here we would have
got soft out right if we entered just
off of you know break of structure off
of you know this thing we would have got
stopped out I really like to use these
as like
my patient entry so essentially with
imbalances all I like to do with these I
use them for retracements so let's say
we get a liquidity sweep a break of
structure and and Market dumps right and
it doesn't give us a good risk reward so
we want we want to wait for a better
trade how can we wait for a better trade
we wait for a retracement into a fair
value Gap scale down to a lower time
frame and then find a break of structure
off of that because that's confirming
that okay price is going to continue in
the right direction
make sense
okay let's let's do a couple more
examples of of seeing how these work
okay so right here
on GJ
we have High time frame highs right up
here correct then what happens we get a
break of structure on the 15 minute we
get a sweep of liquidity a break of
structure on the 15 minute we have
multiple fair value gaps here we have a
fair value Gap
right here
and we also have one right up here
again Mark out both see how we want to
find a reaction okay
scale down into a lower time frame okay
we see the five minute okay break
structure to the upside that means okay
cool that means we're going to retrace
on the 15 minute when we see breakup
structure on the five minute that
doesn't mean oh complete Trend shift
that just means all right we'll probably
be retracing on the 15 minute because
the 15 minute broke structure the one
hour broke structure we're showing
bearish confirmation on higher time
frames than the five minutes so this
breaker structure to the upside is
telling me we are getting a retrace
we are retracing on the higher time
frames okay we see the the first
imbalance get filled what happens after
that boom break of structure off the
five minute how would we enter off of
that short position off of here stop
above these highs right okay where can
we target previous areas of liquidity we
could Target right here we can Target
this accumulation within here wherever
we want right liquidity all the way down
here
um and right all of these end up getting
hit
you know following this right there was
a big imbalance and there was a big
accumulation area down here on the uh
the one hour and the four hour all the
way down here this would have been a
great trade to take all off of just boom
right these two the literally three
simple Concepts that we've learned
liquidity sleep brake structure
imbalance fill break of structure see
how we can start grabbing pieces of our
building blocks from a strategy and we
haven't even gone over these steps of
our strategy yet we haven't even gone
over that yet and we can already start
taking these pieces and putting them
together to form a bias to form actual
um you know like understand where Market
wants to go and we don't even have a
strategy yet we don't even have our
executions down yet
right this is this is valuable stuff
okay so boom that's another example
let's go into GBP USD
oops
as you can see I marked out a little
imbalance within here
that we just filled I'm going to
actually remove all these drawings
though
so we can talk about it let's see
let's see if we can find a fair value
Gap getting filled
this is a perfect example
okay right here on the four hour again
right this is applicable to every single
time frame four hour we get a break of
structure okay we see an imbalance right
here
we also see an imbalance within here
okay what are we looking to do we're
looking to right
scale down into a lower time frame we
know that we broke structure so that
means at least we're going to have some
sort of you know move down okay we're
looking for a retracement okay we see
price rally all the way up in through
this past it right the second we push
past this no longer considering it okay
I no longer want it all right it's not
of interest to me okay then what else do
we have in line with this imbalance
right here we have liquidity liquidity
lying right here break of structure on
the four hour along with the imbalance
this looks perfect what does gold do
Spike up into that liquidity area
Spike up into the liquidity area boom we
get a break of structure on the 15
minute that is kind of drastic all the
way down here okay either you can short
off of this break of structure right
here
okay Target previous areas of liquidity
down here maybe the accumulation that
caused the rally up that was from right
here whatever you want to do maybe
Target the imbalance the start of the
imbalance right here the 50 of the
imbalance the end of the imbalance right
here whatever you want to do this is
just showing right we see the imbalance
get filled we see liquidity again two
building blocks liquidity getting taken
out imbalance getting filled boom Market
Falls okay you also could have scaled
down to even smaller time frame like the
five minute yeah you didn't even get a
break until
same area on the 15 minutes up
again another example of this working
let's find another example on a smaller
time frame
hopefully you guys are starting to piece
this together
start to figure out you know
okay this is how we can use this to our
to our advantage okay right here
right I'm literally just eyeballing this
stuff you know seeing whatever I see
right here we get a one hour break of
structure the upside let's look at the
high time frame okay we're bullish
because we got that daily break of
structure at the upside up here okay we
see price drag on down fill into this
accumulation that caused the rally up
all right and we'll talk about
accumulation and distribution later in
this course as well okay so we see a
breaker structure of the upside okay we
see price coming back down okay if we go
to the four
we go to the four hour we can see boom
we have this imbalance right within here
we see price boom break structure fall
back down within here we also have
one hour imbalance right in here and
honestly this is the one that I would
prioritize due to the fact that we can
see hey this one hour Wick fills all the
way up to pretty much this Wick so this
isn't even an imbalance we're waiting
for it to come down in here what does
price do come in here what can we do
scale down onto a lower time frame
maybe 15 minutes since we're on the
hourly
okay what are we waiting for you know
Trend shift Trend change okay we do get
a right a move here breaking structure
right here
what would I ideally want you know
probably for this liquidity to get taken
out right because as we start scaling
lower and lower we can see okay
from
from here and up that's not where the
imbalance is because this Wick filled
the imbalance where's the imbalance from
actually
right here from this Wick to here right
this is where the imbalance was this is
where we were not able to get filled
okay so we see here boom we're gonna
break the structure probably faking
people out and right if we scale down to
the one hour
uh where where was that
[Music]
um
whatever oh yeah if we scale down to the
one hour this boom it's just one hour
candle up we didn't get very much conver
uh very much confirmation on this this
looks like a sort of re retrace on the
hourly however we do see boom doji
candle okay
what is that telling us okay remember we
talked about candlesticks on that on
that uh on literally like our second day
doing this we talked about those doji
candles talking about
indecision in the market right we see
indecision within here okay we don't get
a we don't get a breaker structure here
we don't get a break of structure here
we don't get a break of structure here
boom we finally get the break of
structure right here on this Candlestick
and that honestly looks like that's when
the hourly broke structure as well so
that's two breaks of structure yup broke
structure or actually Road structure
um
Road structure with this Candlestick so
I guess you would have gotten in a bit
earlier
but still same thing we see brake
structure okay we see a rally on up okay
maybe our first take profit is up here
maybe you get scared because price comes
up a little bit
misses your misses your first take
profit
scares you dips down one more time into
this fair value Gap filling the
imbalance once again price rips takes
out previous liquidity and then in turn
fills the imbalance that we had within
here as you can see imbalance gets
filled what do we get smaller small
reaction then what happens imbalance
right here
boom gets filled brake structure rally
higher what happens next we target this
area of liquidity see how fluid this
moves
see how fluid this is
it is Clockwork once you start
understanding these Concepts I was
literally able to flow through [ __ ]
swimming through that shark
going over it obviously it's easier to
do in hindsight which is why we got to
practice and which is why you know we
gotta get experience in watching these
happen live okay
but you will be able to spot these
things and you will
be able to actually take trades off of
these once you start getting a feel for
them once you start getting used to see
how these markets move
okay I literally just laid out like six
five to six trades that were [ __ ]
baby food okay for imbalanced plays and
I don't even really like taking a lot of
Trades off of imbalances
to me imbalances are mainly used for
retracement tools to figure out where
Market wants to retrace to and then from
there I find other reasoning on why I
want to get in whether it's an order
block whether it's a break of structure
whether it's a liquidity sweep within an
imbalance then a breaker structure
I use it as more of a confirmation
rather than an entry
okay so that being said hopefully that
gives you guys a solid understanding of
fair value gaps and the next concept we
are going to move on towards is order
blocks okay we have liquidity sweeps
done break of structure done fair value
gaps done now on to order blocks we're
going to do the same thing part one part
two and then part three putting it all
together part one explaining it part two
spotting it in part three putting it all
together how we can use it as a trade
and a man we are starting to get a lot
of these pieces together after
um order blocks we'll go into
equilibrium and then from there it's
strategy time and you're probably
thinking damn man we're like getting
close to the end no we're not no we are
not because there's still a lot more to
talk about there's still a lot more to
talk about than just strategy and
obviously that's why we're flip-flopping
back and forth between psychology and
this trading stuff so hopefully
it's been two weeks now hopefully you
guys have seen an improvement on your
mental your mental discipline and if you
haven't
and you haven't been following
everything that we've been doing in the
boot camp if you haven't been doing your
homework
maybe that's something you need to get
on maybe that's something you need to
start doing okay to start improving
yourself all right with that being said
that's it for me that's it for fair
value gaps I'll see you guys tomorrow
we'll talk talking more on psychology
talking more on discipline and then the
day after that we'll get started with
order blocks all right hopefully you
guys learned something from this I'll
see you boys tomorrow