so now I'm going to go over my three entry confirmations this video will be the first one which I use most often and most of my trades are based off of this and that is the inverse fair value Gap so basically what we see here is three candles this is a fair value gap of course there's an open space in between these three candles where no Wick is involved just in these three of course now that you know what we can do to spot a fair value Gap what I wait for is a close below
that fair value Gap so what I would wait for here is a bearish candle to close below that and I'm just putting the wick so you guys can get a clear sample of this so I wouldn't enter shorts off of this I wouldn't go short here because that Gap is still being respected nothing's closed through it but say we close through that Gap that's where I enter shorts once we inverse the Gap we violate this fair value Gap you can put a stop above that recent high and obviously Target your levels so let's take some
examples on the chart of this so we are on the daily time frame but we do take this entry on a lower time frame so let's drop down to say the 5 minute we find our entries on the 1 to the 5 minute time frame so let's take an example here we're bearish in this case say we have smt with NASDAQ and Es that's one of our entry confirmations what we do here is we have a bullish fair value Gap and say we're looking to go short for whatever reason this confirms my entry here we
close completely below this fair value Gap so that's where I enter shorts Target my draws on liquidity let's look at another example here so as you can see here's another one we have a bullish fair value Gap what did we do we closed below that Gap stop above this swing High Target these lows and I will also go over where to put your stop loss on all of these trades this is just an example on how to trade inverse fair value gaps great example here big push down we have a bearish fair value gap for
whatever reason we determine we're bullish how are we going to enter off this usually if you're waiting for something like a break of structure you're going to have to wait until up here and get your entry point and your risk to reward is going to be worse but this definitely gives you a better RR we close above that bearish fair value Gap so we take Longs here and Target our levels so essentially it's a fair value Gap but instead of trading it like a touch into the fair value Gap and go long you wait for
a full close below or above that Gap as your entry confirmation I'll be going over change in state of delivery and break of structure next it's