The Only Fair Value Gap Video You Need.

if you've been looking for a no BS guide on Fair Value gaps this is it I'm going to simplify all the stuff that ICT talks about in his mentorship or my boot camp that you didn't really understand the first time I pretty much use this strategy every single day so you guys can see in my trade Recaps I'm using this consistently so let's get in the charts get ready to lock the [ __ ] in let's learn some [ __ ] all righty so first thing that we're going to do is just talk about fair

value gaps and honestly I want to talk about imbalances in general because this is a video that is going to cover a lot of [ __ ] that I haven't talked about before on my YouTube channel you're probably thinking tjr another fair value Gap video you've made eight videos on Fair Value Gap so far there's two parts in like the very first time that you were on YouTube you've made three parts on the boot camp and you made two parts on the trading transformation well guess what there's more okay so I'm going to be talking

about imbalances as a whole on top of fair value gaps we're going to be talking about New Day opening Gap new week opening Gap candle gaps and inverse fair value Gap on top of fair value gaps as a whole so the first thing that we want to do is understand what imbalances are it's imbalance price action and you're probably saying hey you can't use the definition of a word that's already in it shut up okay this is an English class we're here to learn some [ __ ] okay so when we think about what does

imbalance even mean it means price isn't balance out so what is price likely going to want to do to imbalance price action balance it out fill in that imbalance price action and that's pretty much what all of these imbalances are right that's why we call them imbalances okay so fair value gaps candle gaps new day opening gaps new week opening gaps and inverse fair value gaps are unbalanced price action that price is likely going to draw back in towards so that we can form either executions based off of that daily buyas based off of that

and I'm going to show you guys what all of these things are on the chart right now so first thing that I want to cover is obviously fair value gaps this is like the most typical one that you guys hear about when we say oh there's an imbalance on the chart everyone's like just going to assume that it's a fair value Gap okay so what does a fair value Gap consist of a fair value Gap is a three Candlestick pattern I'm going to go ahead and Picasso this [ __ ] it's a three Candlestick pattern

one candle in the middle that I'm kind of doing this [ __ ] off the dome but I like to call it kind of like the extension candle or the candle that really makes the Gap happen so in order for a fair value Gap to be a fair value gap or to have an imbalance you'll typically see this all the time on the chart you'll see hey in this case this is a bearish fair value Gap we see that hey this Wick from the first candle doesn't cover up the top wick on the third candle

and we see that there's a gap between these two candlesticks okay so we can see that within here there's a lack of buy orders okay why because this candle was able to swiftly move straight through this price range okay so now with that in mind we know that price was able to swiftly move past this price range and there's a lack of buy orders so what is price going to want to do to this imbalanced price action it's going to want to balance it back out fill in that imbalance price action fill more sell orders

so price price can what move further to the downside plain and simple super easy you guys have seen this all over the place right now let's show bullish fair value gaps it's the same exact thing but just in the other direction again fair value Gap three Candlestick pattern you guys have probably seen me explain these so many times so I'm going to go through fair value gaps a little bit quicker than all the other ones because you guys are pretty familiar with this concept right again bullish fair value Gap it's a three Candlestick pattern how

do we know that it's a valid fair value Gap we look at the top Wick of the first candle over to the bottom Wick of the third candle let's say this Wick's pubic hair just goes a little bit longer what's that going to look like is that a fair value Gap didn't think so boom okay we need some Gap work like someone's got a big ass gap between their teeth and you can't stop staring at it that's how you guys should be staring at fair value gaps we want to balance out that price action okay

so boom we take it from the top Wick of the first candle to the bottom Wick of the third candle and don't worry we're going to go in the chart and show you guys what this actually looks like on real candlesticks instead of my beautiful paintings of them and what is price likely going to want to do to this imbalance price action where there's a lack of sell orders it's going to cause price to want to push right on down there balance out price action fill more buy orders to make price do what push up

higher cool cool now let's show this on the actual chart and the awesome thing about this is these show up on every single time frame so that's the way that I teach my [ __ ] all of my confluences they show up on every single time frame time frame they're applicable on every single time frame okay so whether you're trading on the 4 Hour the daily 15 minute 5 minute 1 minute whatever it may be so without further Ado what do we see right here big extension candle big imbalance of price so what is price

going to want to do it's going to want to balance out price action so what do we do we take it from the top Wick of this first candle up to the bottom Wick of this candle mink draw that right out boom price balances out price action and price continues higher right we see the imbalance get filled another example right here what do we have balance price action big dick of a candle to the upside take boom from the top Wick of the first candle to the bottom Wick of the third candle what does price

do balance out that price action continues a little bit higher okay and you're probably saying well tjr what the [ __ ] happened on this bearish fair value Gap dum dum it was supposed to go down lower well that's the thing our confluences are nothing without context and bias so if you guys are having trouble like saying hey I take a short on every single bearish her value Gap all right right let's settle down you're not trading correctly okay you guys need bias and you guys need context for the trades that you guys are taking

so again this video is just covering imbalances as a whole understanding the concept understanding why we're even able to classify these as confluences in the first place so that we can Implement them in our trading make sure you guys have a good understanding of how to find daily bias make sure you guys have a good understanding of how to execute for just jumping right in and being like B I'm going to take trades off of this so boom that's fair value gaps now let's go ahead and talk about inverse fair value Gap we're going to

jump right in here and you're probably thinking what is a inverse fair value Gap is it the opposite of a fair value Gap is it when the pubic hairs of the Wicks actually touch together inverse fair value Gap is when we have a fair value Gap where we essentially invalidate the fair value Gap to the upside okay so here boom this is a bullish fair value Gap but what do we see with this next candle doesn't necessarily have to be the exact next candle it can be several candles afterwards and again I'll show you guys

several examples of this outside of my Picasso painting but I just just want to draw this out for you guys so you guys can have a better view of it okay so boom we have a bullish fair value Gap and we're expecting for price to do what to come in here balance out price action see buy orders to the upside and continue up but then what happens we get the opposite of that and price ends up closing underneath the fair value Gap so that turns this into an inverse fair value Gap and how do I

treat inverse fair value gaps I'm not necessarily looking to use these as confluences I like to call inverse fair value gaps more of like confirmation so I use inverse fair value gaps super similar to break breaks of structure again this is something that can tell me before a break of structure even happens that hey our bullish order flow like in this example is getting disrupted and isn't getting respected so in turn what is that going to make me do that's going to change my bias of the overall trend within the market so right here we

have a nice little bearish fair value Gap right here right we see price boom dick and balls pattern straight to the upside rip work right closing significantly Above This fair value Gap freaking dead on right this is like crazy work Edge during pre-market nut right when Market opens boom we close above this a fair value Gap is still valid if we Wick to the bottom of it and Wick past it so see right here on this bullish fair value Gap this still gets respected right if we closed underneath it it would turn into an inverse

fair value Gap however it was just a wick to the Downs so we see the price close above here and also on top of that it is breaking structure to the upside but again we could have treated this if we didn't break structure to the upside as if it was a break of structure to the upside as confirmation more examples of this will go down into a lower time frame I've shown several examples of this too on my trade Recaps so if you guys haven't watched those I highly suggest you do let's go ahead and

like just draft this up as if we're looking to take a trade okay so here's Market open I remember this day I was bullish we had a draw in liquidity right here okay let's scale down even lower the lower time frames so look we come down we sweep liquidity okay let's say we missed all of this right we start to see price retracing okay we see a slight retrace what do we have within it here A bunch of bullish fair value gaps right could have been taking trades off that okay but on top of that

what do we see we have a bearish fair value Gap right here and if price wanted to continue this retrace what would have it done it would have pushed into it it would have balanced out price action and it would would have continued lower but what did price do price closed Above This bearish fair value Gap and continued bullish price action and price goes higher and higher let's show one more example of this boom here's a beautiful example right here we see sweep of of liquidity boom break of structure boom on top of that how

do we know that right after this Candlestick that the overall direction of the trend is going to change until we can take out significant liquidity by this confirmation right here of this inverse fair value Gap boom this is a bullish fair value Gap that should have gotten respected and it didn't we get a closure underneath price what does it do seeks out to fill boom this imbalance and take out this draw on liquidity take out this draw on liquidity and all these other draws on liquidity all the way down here here so boom inverse fair

value gaps done again if you guys want a more super duper duper in-depth of me like talking out exactly how to draw these things out on the chart I already got a video on it in the trading transformation fair value gaps there's 10 of those [ __ ] by me all over the place now we're getting into some [ __ ] that I haven't talked about before on this channel which is New Day opening gaps new week opening gaps and candle gaps which is actually pretty exciting so right here we'll actually talk about new week

opening Gap we'll start off here right here is when the week close for whatever reason this week closed on Thursday my guess is that there was a bank holiday on Friday okay but regardless boom this week closes right here then what does the new week do it opens up here with that in mind this is a imbalance what do we know about imbalanced price action price is going to want to balance out imbalanced price action so we know within this price range this is imbalanced price action so what can we kind of do we can

kind of treat this as a fair value Gap what do we know about imbalanced price action price is going to want to see seek out and fill that imbalanced price action damn near immediately so what do we see price do we get a little leg up right when the new week opens and then boom We immediately draw into that new week opening Gap we can kind of see it as like a draw on liquidity because price really wants to fill in those imbalanced price ranges okay so that's an example of new week opening Gap we

can go to the weekly chart and just spot these super easily by just plain and simple seeing where the previous weeks close and where the new weeks open all of these you will see for a fact is filling these in so boom right here this is where the previous week closed this is where the new week opened I don't even have to go into on the chart because we can see the price action through the wick of the Candlestick we can see price at some point in time during this week wanted to fill in this

imbalance price action we closed right here on the previous week and we opened on this week right here but we see that little snail Trail of the wick that shows that we filled in this imbalanced price action and then price continued up again same thing here we have this this week's close the next week week's open is a little bit higher we know that this imbalanced price action was filled in purely based on this candle's Wick another good example boom this week's candle close see this week it wanted to be bullish but what did it

have to do it had to fill in this imbalanced price action it's this is something that's super important that is really beneficial for you guys to keep in mind that barely anybody [ __ ] talks about on the internet on YouTube and the same thing applies to days okay so again we can see [ __ ] is like clockwork bro look at this this day closes here this day opens here what is it going to want to do boom we see a wick to the downside what did it do fill in this imbalanced price action

same thing right here candle close right here candle open right here what is price going to want to do fill in the imbalance price action get me like are we starting to understand how every single time we have a different close and a different open we are typically going to come through and fill in price action candle close candle open what do we do fill in the imbalance price action okay we got it new day opening Gap covered what are they they're imbalances price is going to want to seek out those imbalances and balance out

price Action Now last but not least we can talk about candle gaps okay and candle gaps are essentially new week opening gaps and new day opening gaps but just on smaller time frames than the daily and the weekly so again it's the same situation we typically see this happen pretty often on the one minute time frame do I use these that often and do I necessarily use like new week opening Gap and new day opening Gap all the time not necessarily but again what am I here to do I'm here to teach you guys how

to be good Traders I'm here to teach you guys how to understand price action to its fullest and I felt like with me only making a video on Fair Value gaps and me only making a video on inverse fair value gaps it's doing you guys a disservice because there's other imbalances out there okay so boom this is a perfect example again it's on the one minute and it's hard to like again again are are we likely going to be taking trades off of this no but do we want to understand why price moves the way

that it does absolutely so we can see this candle closes right here this candle opens right here it doesn't immediately just go up what does it do fills in imbalan price action okay let's find another example boom right here this candle closes candle opens what does it need to do boom fill in imbalance price action like a broken record at this point so there you guys have it pretty much covered everything there is to imbalances fair value gaps iners fa value gaps new day opening Gap new week opening Gap and candle gaps so if you

guys really [ __ ] with this video I'm glad thank you guys for trying to mix and match the content you know a little bit of like chart work and a little bit of me in front of you guys and the camera like talking to you guys so if you guys enjoyed this drop a [ __ ] like subscribe and on top of that I just filmed a video doing a similar type of filming setting of how I made $6,000 in literally under an hour on how I found my daily bias how I found the

high you know like good area price range to look to execute within and how I executed in order to make that money in order to hit take profit so if you guys want to see that video link will be wherever up here go and [ __ ] click that okay and then on top of that if you guys want to learn all about this [ __ ] you guys can look at the boot camp you guys can look at the trading transformation or even better if you guys don't want to get beamed with ads and

[ __ ] I put the best videos from the trading transformation the boot camp all together into a literally free course even those those are already for free on YouTube but I know you guys hate giving me money so boom I'm going to put it in the description for absolutely absolutely free no ads I appreciate you guys for watching peace out