Arjo's "Fair Value Gap" Theory

Summary

The video script delves into the concept of fair value gaps in the market, explaining how they can predict market movements. It emphasizes the importance of the third candle in a three-candle pattern to identify breakaway gaps, which are unlikely to be retraced before reaching a certain level. The script also discusses how understanding fair value and market structure can help traders capitalize on these gaps for short-term gains. It suggests that by recognizing where the market has offered fair value and where it hasn't, traders can determine which gaps are most likely to be respected or traded into, both in the short and long term.

Takeaways

• 📈 Fair value gaps are crucial in understanding market movements and can predict which gaps will be traded back into.
• 🔍 To analyze fair value gaps, focus on the third candle of a three-candle pattern, as it indicates whether the gap is a breakaway gap or not.
• 🟢 Green fair value gaps represent normal gaps expected to be retraced into in the short term, while red ones indicate breakaway gaps that won't be traded back into before reaching a certain draw on liquidity.
• 📊 The third candle's behavior (closing above the previous candle's high) is a general rule of thumb to determine if a gap is a breakaway gap.
• 📉 Understanding breakaway gaps is essential for capitalizing on market opportunities, as they represent a high probability of not trading back into the gap in the short term.
• ⏳ Time is a critical factor in determining which fair value gaps to trade into, as it affects the likelihood of retracement.
• 🔄 The market structure and the concept of fair value suggest that gaps above intermediate-term highs are the areas where fair value has not been offered yet.
• 🎯 When trading, consider the overlapping of highs with fair value gaps to identify the most relevant gaps for potential market moves.
• 📝 Fair value is about offering a balanced opportunity for both buyers and sellers, and understanding this can help predict market behavior.
• 🚀 Adding time to the analysis of fair value gaps can enhance the accuracy of predicting market movements and potential trading opportunities.

Q & A

What is the main theory discussed in the transcript?

The main theory discussed is that fair value gaps can reveal everything you need to know about the market, including which gaps will be traded back into and which are breakaway gaps.

What is the significance of the third candle in a three-candle pattern?

The third candle in a three-candle pattern is significant because it can indicate whether a fair value gap is a breakaway gap or not, which determines if the gap will be traded back into in the short term.

How can you identify a breakaway gap?

A breakaway gap can be identified if the third candle of the fair value gap closes above the previous candle's high, indicating that the gap will not be traded back into before reaching a certain draw on liquidity.

What is the difference between a breakaway gap and a normal fair value gap?

A breakaway gap is a type of fair value gap that will not be traded back into before reaching a draw on liquidity, while a normal fair value gap is expected to have a retracement into it in the short term.

How does understanding fair value gaps help in trading?

Understanding fair value gaps helps traders to identify potential entry and exit points, as well as to anticipate market movements, which can lead to more informed and profitable trading decisions.

What is the role of time in understanding fair value gaps?

Time plays a crucial role in understanding when a fair value gap will be traded back into. By considering the time frame and the market structure, traders can better predict the likelihood of a gap being filled or respected.

How does the market structure relate to fair value gaps?

The market structure, including intermediate-term highs and lows, helps to determine which fair value gaps are relevant and which ones the market will likely respect or target for future movements.

What is the importance of the previous candle's high and low in identifying fair value gaps?

The previous candle's high and low are important because they help to determine the nature of the fair value gap. If the current candle closes above the previous high, it suggests a breakaway gap, while closing below the previous low indicates a bearish fair value gap.

How can traders capitalize on the knowledge of fair value gaps?

Traders can capitalize on this knowledge by using it to make informed decisions about when to enter or exit trades, as well as to manage risk and anticipate market reactions to certain price levels.

What is the significance of overlapping fair value gaps and highs in the market structure?

Overlapping fair value gaps and highs in the market structure indicate areas where the market has offered fair value to both buyers and sellers. These areas are often respected by the market and can serve as potential support or resistance levels.

Outlines

00:00

📈 Understanding Fair Value Gaps and Breakaway Gaps

The paragraph discusses the concept of fair value gaps in the market and how they can predict market movements. It explains that fair value gaps, particularly the third candle in a three-candle pattern, can indicate whether a gap will be retraced. The distinction between breakaway gaps (which are not expected to be retraced before reaching a certain level) and normal fair value gaps is highlighted. The speaker uses examples from NASDAQ to illustrate these concepts.

05:02

💡 Capitalizing on Fair Value Gaps

This section focuses on how to use the knowledge of fair value gaps to make profitable trades. It emphasizes the importance of understanding the draw on liquidity and how to identify breakaway gaps. The speaker guides through a thought process for capitalizing on these gaps by looking at different time frames and premium arrays. The goal is to identify when and where to enter trades based on the behavior of the third candle in a fair value gap.

10:04

🔍 Trading Strategies with Time Frames

The paragraph delves into the practical application of trading strategies using different time frames. It explains how to identify fair value gaps in various time frames, such as 15-minute, 1-hour, and 4-hour charts. The speaker advises on when to wait for retracement into a gap and when to expect a move towards draw liquidity. The concept of trading off and into fair value gaps is discussed, with an emphasis on not missing out on opportunities due to waiting for a gap to be filled.

15:06

📊 Market Structure and Fair Value

This part of the script explores the relationship between market structure and fair value. It explains that fair value is about offering both buyers and sellers a chance to participate in the market. The speaker discusses how the market seeks to rebalance by offering fair value, which is often seen in the form of gaps. The concept of overlapping fair value gaps and their significance in market structure is highlighted, along with the idea that the market will respect these areas to continue moving in a particular direction.

20:06

🚀 Enhancing Trading with Fair Value and Time

The final paragraph wraps up the discussion by summarizing the understanding of short-term and long-term fair value gaps and their relevance to trading. It introduces the concept of adding time as an additional factor to enhance trading strategies. The speaker teases the idea of a money-making team and invites the audience to a new website for more features and learning resources. The paragraph ends with a reminder to join the Sunday weekly forecast live stream for more insights.

Keywords

💡Fair Value Gaps

Fair Value Gaps refer to the price differences that occur in the market, which are believed to indicate future market movements. In the video, the speaker discusses how these gaps can signal whether a price will revert to a previous level or continue in the direction of the gap. The speaker uses the NASDAQ as an example to illustrate how different types of gaps, such as breakaway gaps, can be identified and analyzed for trading opportunities.

💡Breakaway Gaps

A breakaway gap is a type of gap in the market where the price moves significantly in one direction and is not expected to be filled (or traded back into) in the short term. The speaker explains that understanding the third candle of a three-candle pattern is crucial in identifying a breakaway gap. If the third candle closes above the previous candle's high, it suggests a high probability of a breakaway gap, indicating a continuation of the current trend.

💡Candle Patterns

Candle patterns are graphical representations used in technical analysis to understand market sentiment and predict future price movements. The video emphasizes the importance of the third candle in a three-candle pattern, as it can indicate whether a fair value gap is a breakaway gap or not. The first candle can be any type of formation, the second is typically an expansion phase, and the third candle's behavior determines the nature of the gap.

💡Retracement

Retracement refers to a temporary reversal in the price movement of a financial instrument, typically following a strong trend. In the context of the video, retracement is discussed in relation to fair value gaps, where the market may retrace into a gap before continuing its trend. This concept is used to identify potential entry and exit points for trades.

💡Draw on Liquidity

Draw on liquidity refers to the market's tendency to move towards a level where there is a significant concentration of orders, either to buy or sell. This concept is used in the video to predict where the market might move next, especially in relation to breakaway gaps and fair value gaps. The speaker suggests that understanding draw on liquidity can help traders anticipate market movements and make informed trading decisions.

💡Market Structure

Market structure in the video refers to the overall organization and behavior of the market, including the distribution of buyers and sellers. The speaker discusses how understanding market structure can help identify areas of fair value and potential turning points. For instance, an area above a significant high may not have offered fair value yet, suggesting that the market may eventually move to that level to balance out the buying and selling pressure.

💡Timeframes

Timeframes in trading refer to the duration over which a particular chart or data is observed. The video mentions different timeframes such as weekly, daily, 4-hour, and 15-minute charts. The speaker uses these timeframes to analyze the market and identify fair value gaps and potential trading opportunities. By looking at multiple timeframes, traders can get a more comprehensive view of the market's behavior and make more informed decisions.

💡Fair Value

Fair value in the context of the video is a concept that represents a balance between buyers and sellers in the market. The speaker explains that the market is always seeking to offer fair value, meaning that both parties should have an equal opportunity to participate. This concept is used to understand why certain price levels may act as support or resistance and why gaps may or may not be filled.

💡Trading Strategies

The video discusses various trading strategies based on the analysis of fair value gaps, breakaway gaps, and market structure. The speaker provides insights into how traders can capitalize on the knowledge of these concepts to make profitable trades. For example, understanding when a gap is likely to be filled or when the market will respect a certain level can help traders decide when to enter or exit a trade.

💡Technical Analysis

Technical analysis is a method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume. The video heavily relies on technical analysis to explain the concepts of fair value gaps, candle patterns, and retracements. The speaker uses technical analysis tools to predict future market movements and identify trading opportunities.

Highlights

Understanding fair value gaps is crucial in the market as they can indicate potential future price movements.

Fair value gaps are identified through a three-candle pattern, with special attention to the third candle.

Breakaway gaps are a type of fair value gap that is unlikely to be traded back into before reaching a certain level of liquidity.

The third candle's behavior in a fair value gap can help determine if it's a breakaway gap or not.

If the third candle closes above the previous candle's high, it suggests a breakaway gap with a high probability.

Fair value gaps can be used to identify potential trading opportunities and to manage risk.

The concept of fair value is about offering a balanced chance for both buyers and sellers to participate in the market.

Market structure analysis can help in understanding which fair value gaps are more likely to be traded back into.

Fair value gaps that overlap with previous highs or lows are more relevant for trading decisions.

The market is always seeking liquidity, which can be understood through the concept of fair value gaps.

Understanding the time factor in relation to fair value gaps can enhance trading strategies.

The speaker's website offers resources for traders to improve their understanding and application of fair value gaps.

The speaker's YouTube channel provides a weekly forecast and live streams for traders to follow.

The speaker emphasizes the importance of not only identifying fair value gaps but also understanding their context within the market structure.

The speaker suggests that by understanding fair value gaps, traders can gain an edge over 99% of other traders.

The speaker provides a detailed explanation of how to analyze and trade using fair value gaps, including the use of different time frames.

The speaker's approach to fair value gaps combines technical analysis with an understanding of market psychology and liquidity.

The speaker's method involves a step-by-step process of identifying, analyzing, and capitalizing on fair value gaps.

Transcripts

I have a theory that fair value gaps

tell you everything you need to know in

the market so that also means that fair

value gaps tell you which fair value

gaps will be traded back into right

exactly so let's dive straight into it

first step understanding the three

candle pattern but paying extra

attention to details because we are

going to pay extra attention to the

third candle of that three candle

pattern right here I have marked out all

the recent fair value gaps on NASDAQ

what you're seeing here and the gray

boxes you are seeing right there are all

the recent weekly fair value gaps on

NASDAQ starting with this one and that

one and that one right there that one

that one that one and that one now can

you notice a certain difference right

here where they all have the three

candle pattern meaning they all create a

fair value Gap with the first one right

there creates a fair value Gap with 1 2

3 the second fair value Gap 1 2 3 right

there can you already notice a

difference between that first fair value

Gap and that second fair value Gap with

paying attention to the third candle so

if we dissect a fair value Gap being

created again it's a three candle

pattern with the first candle can do

whatever it wants can be consolidation

expansion whatever it wants to be the

second candle is of course always an

expansion phase what we're seeing on

that first for V Gap right there it's

always an expansion phase because that

creates the overall body of the fair Gap

the actual Fair Val Gap then the third

candle can either consolidate be an up

candle be a down candle and depending on

what that third candle is is how we

already will know if it is a breakaway

Gap a breakaway Gap is a fair value Gap

but within fair value gaps you also have

a different kinds of gaps where a

breakaway Gap is a fair value Gap but a

breakaway Gap is understanding that the

Gap will not be traded back into before

we reach a certain draw on liquidity so

in the short term in the next few

candles next two three candles we will

not trade back into a breakaway Gap so

if we understand the third candle of a

fair value Gap then we can understand

and have a great idea already if that

fair value Gap is actually a breakaway

Gap and if we look at this screen right

now then we see the red fair value gaps

and we have green fair value gaps all

the red fair value gaps are Breakaway

gaps and the green fair value gaps are

just your normal fair value gaps that we

can expect a retracement into in the

short term as well why is that because

if we again look at that first Fair Val

Gap what do we see we have again 1 2 3

this last candle the third candle right

there that can be a consolidation

expansion whatever it wants to do but if

it wants to expand higher meaning as a

general rule of thumb if it wants to

close above the previous

candle High meaning previous candle high

of the second candle that is the

expansion phase if it wants to close

above that right there then that as a

general rule of thumb means that we are

not going to trade back into the F Gap

right there before we continue higher so

here we can see yes eventually we trade

back into it but in the short term we do

not trade back into it then that is

already the first indication but not the

only one that it is that that is a

breakaway Gap then the second Fair Val

Gap the green one right there this is

the previous weak high as in that is the

previous high of that candle again this

is fractal it's not only on the weekly

do we close above it no a great

indication that once we leave behind

that F Gap we actually want to trade

into it to then continue higher with in

the third Fair Val Gap what do we see do

we close above that previous candle High

the second candle right there no so we

trade back into it that third fair value

Gap also a green Fair Val Gap because

what do we see on the previous candle

low do we close below it right there no

so the next candle in the short term can

trade back into the F Val Gap that was

created then after that what do we see

on this candle right there again 1 2 3

we see that we are closing above the

previous candle's high and that is the

same for the next candle right there

which both these Fair V gaps right there

are what Breakaway gaps where this right

there the next Green Fair Val Gap is not

why not because again same exact thought

process right there so that is only the

first step and if we understand that

first step that's already an incredible

step we already know more more than 99%

of the Traders on which fair value Gap

will actually be traded back into but

this is all fun of games but how do we

now actually capitalize on this the

knowledge is fun but we want to make

money here so what do we do in this

situation so I want us to pay attention

to this green fair value Gap right there

going to remove it going into the replay

mode to show you exactly the thought

process right here we are moving higher

we are moving towards a draw on

liquidity so understanding the draw on

liquidity right here is again the

closest premium array right there we've

been moving higher draw liquidity the

closest premium array now why is this

Breakaway Gap quite important to

understand because on the next candle

the next weekly candle that opens we now

have a weekly fori Gap sitting right

there so now we need to take into

account all right if we want to reach

this draw liquidity right there do we

first come back into this weekly for Gap

or do we already deliver higher towards

a draw on liity first so what will be

traded back into first the discount

array right there in the form of that

Weekly fair value Gap or the draw

liquidity in the form of that Premier

That Swing high sitting right there well

based on our understanding already we

knew that if this right here closes

above the the previous week high the

previous candle high that third candle

closes above the second candle which is

the expansion phase we understand

already that this now has a high

probability of being a breakaway Gap

meaning that we are likely going to

trade into this draw liquidity first

before we actually reach for that

Breakaway Gap meaning that on the weekly

time frame we currently do not have a

clear discount array the tradeoff of so

what do we do we are now going down one

time frame so if you have a breakaway

Gap you go down a time frame to look for

a new fair value Gap to trade off of so

if we go down into the daily time frame

then on the daily time frame we are now

seeing that we have the draw liquidity

right there and we also have this daily

Fair Val Gap sitting right there so that

daily fa Val Gap is now the f back up we

want to trade off of so here we are now

first targeting this context High

because again understanding that market

maker model we are forming a market

maker buy model here moving from a

discount array to that premium array

this is the area right there where we

want to get involved and afterwards we

need that new context again so this

daily fi Gap will again be responsible

currently to push price higher so why is

that important because now we are not

left waiting for that Weekly F Gap to

hopefully be touched sometime no we are

already getting involved right there

where it's the same exact premise can

you see where this candle close right

there did it close above that previous

candle's high no so what will it do

trade into the fair value Gap sitting

right there that is the highest

probability thing to happen so so now

what do we do we go into the 4our as

well to see all right how can we now

look to potentially capitalize on this

ID that we have if we skip price a few

ticks right there then eventually we are

seeing this very interesting we are now

creating this 4our for Gap right there

that 4our for Gap let's take it into

account what is happening well we have

that third candle the third candle is

closing above the previous candle high

sitting right there what is this price

action likely going to reach for first

the fair value Gap right there that we

might trade higher off of or this draw

on liquidity right there well based on

this knowledge based on the knowledge

the simple knowledge that we currently

have on Breakaway gaps which we are

going to add on to as well this is only

the first part we understand that right

now there's a higher probability of

coming into the draw liity first before

even coming into the 4our valap right

there so let's not get left waiting

because on the 4H hour we simply do not

have any discount array do not have a 4H

hour F Gap to trade off of right now so

what do we do we allow ourselves to go

down a time frame right now to see do we

have a discount array do we have a fair

vag up here to trade off of no not yet

why not because we are not creating that

fa vag up just yet just after the next

candle so what can we do again we can go

down another time frame right there to

find that fair value Gap so here on the

15minute time frame right there do we

now have a 15 minutes Fair VAP yes so if

we want to trade in into any fair valap

then it will be the 15 minute fair value

Gap sitting right there so if we skip

price a few ticks right there that is

exactly what we are seeing which if we

waited endlessly for the 4our V up right

there or even even the 1 hour then we

would simply not have that sting into it

before we reach the draw liquidity

sitting right there that is extremely

important to know to of course

capitalize on the Move also not get left

behind understanding which fi gaps we

want to trade into because we can trade

off of them but we can also trade

towards them because here we are on the

daily time frame again and we are seeing

we're pushing higher nicely that daily F

Gap we've reached the first Target right

there so right now we want to wait again

let's wait a little bit because we also

understand right now that what is

happening whilst this new week is

forming right there we also see that of

course there's a new weekly fair value

Gap forming which that right there is

the previous candle High which will

create a new fair value Gap in the form

of this this fair value Gap sitting

right there so here on the daily time

frame we want to now wait a little bit

because we know there is currently a

weekly fa Val Gap in the making as well

and what do we see on the daily time

frame we now see something very

interesting because we also see that we

are now failing to create a new fair

value Gap higher of that previous fair

value gap which is already a concept

we've gone over a lot of times because

that indicates that there's a lack of

intention currently which is in perfect

alignment right now with understanding

that Breakaway Gap as well because here

we are not closing above that previous

candle high on a weekly basis right

there which means that the next few

candles we can look to trade into the

weekly fi Gap and we can also look again

to trade off of that Weekly fair value

Gap by understanding again that here on

the weekly time frame we have what we

don't have that close above that

previous candle high right there which

indicates that this is not a breakaway

gap which indicates that there's a high

probability we will likely trade into

this faga first before we actually move

to the draw liquidity and that Weekly V

Gap is again where we can trade into it

and we can also look to trade off of it

trading off of it right there is the

highest probability thing to do which if

we now look to trade offit then again

the first Target is this High then of

course after that it's this draw on

liquidity sitting right there so if we

understand that and we go into the 4our

time frame then on the 4our time frame

We are continuing higher nicely overall

right there eventually right there NFP

also happens and we haven't even

Incorporated time just yet where NFP

right there stinks into that 4-Hour for

V Gap sitting right there and eventually

continues higher targeting of course the

first Target sitting right there but at

this moment in time we create again that

new 4our app also continue higher

off of that then right there on that day

on that Monday what do we have we have

on the 1 hour a 1 hour for V up in the

making currently and right there we

could argue that we have this candle

well argue we see clearly that this

candle right there is closing above that

next candle's High all right so likely

we will reach the draw liquidity first

before we actually retrace into the 1H

hour for Gap so let's dive into a time

frame below the 1 hour right there which

on the 15 minute we see we have this

15minute Fair Val Gap sitting right

there now this situation what you would

do here is you would still use the 15

minutes forap just to keep the objective

right there because we have that context

sitting there so we can't take that away

but if we look at this 15 minutes for

vag Gap what do we also see we do see

right there that on the 1 hour the 1

hour vag Gap is even a little bit higher

than the 15 minutes for vag G so what do

you do in a very rare situation like

this you just simply wait you wait if we

get that retracement into the 1our for

Gap perfectly fine we're still happy to

get involved because we still had that

15 minutes for Gap as well sitting

inside that 1 hour for Gap so the rule

overall is still valid but we understand

that it might not want to trade into

that 1our for Gap so what do we do we

just wait if it trade into it we are

still bullish we take a trade off it if

not and we reach that draw liquidity

right there perfect we also know why and

we don't want to trade off that 1 hour

fori gap anymore because because again

we are looking at shortterm returns into

fair value gaps not after a few candles

no what are the next candles likely

going to do right there and in the next

candles we do see that we are coming

into that 1our fi Gap right there to

then continue higher towards the draw

liquidity overall this was the first

understanding as in this is the basic

knowledge of a breakaway Gap that you

have just learned what is the next

knowledge of a breakaway Gap because

after we take that draw liquidity both

those draw liquidities actually then

what do we do Which F vaps do we use

right now because we have quite a f v

gaps to choose from right here so what

do we actually do right now this is

where the flot concept now comes in plus

the fair value concept again a quick

story on Fair Value what actually is

fair value the market is always offering

fair value in other words rebalancing

something those are the same things fair

value and rebalancing or the market is

seeking liquidity so if we understand

that then what actually is fair value

fair value is like it already says in

the name it's offering fair

value meaning that both buyers and

sellers should get a fair chance to get

involved in the market so when there's

only buyers in the market there should

also be a fair chance for sellers to get

involved if they want to get involved

then let's offer them a fair chance to

actually get involved which is why a

bullish fair value Gap right there is

usually what it's only buyers in the

market which is why it's called a fair

value Gap in the first place because

there's a lack of fair value there so we

need some sellers inside that bullish

fair value Gap to actually offer the

fair value to then continue higher so

with that logic we could argue that

every fair value Gap should be traded

back into right and that was also my

first understanding of a fair value Gap

until I dove deeper into it because if

we zoom out a little bit and we make use

of overall structure Market structure of

the market then what do we actually see

well if we zoom out then here we have

this buy side offering so here we've

been going higher so overall we can

argue there has been buy side offered

right there after after we make this

retracement into the weekly fair value

Gap to offer some fair value and after

that we move a higher again so in those

recent swings one 2 three right there

that creates what creates a mitigation

block but not only that that also

creates a fair value area because if we

want to continue higher right now then

where is the only place that we have not

offered fair value just yet everything

Above This high right there because

everything above that high what happened

let's zoom in a little bit everything

above that high we only had buy side

where below that high so this area again

is where we had what we had buy sides in

the form of this move higher right there

we had sell side in the form of that

move lower buyers and sellers both got a

fair chance to get involved after that

we move higher above that high which is

what we call a market structure an

intermediate term High which creates the

area above that high again above the

intermediate ter High which is the only

area that we have not offered fair value

in the short term right there I hope I

can hear some clicking sounds in your

mind because which also means of course

that if everything above that high is

not offered fair value value just yet

then the only place that we can return

to to continue higher is what it's the

high right there with the

overlapping fair value Gap that is the

area that price is going to want to

respect right there to then continue

higher off of that which we are

consistently seeing look at these highs

overlapping with the for gaps look at

these highs overlapping with the for

gaps look at SE lows right there

overlapping with the F gaps because

those areas are where fair value is

meaning we should respect those areas

respecting again meaning that we are

wicking those areas but we are not

closing below it and we are not creating

bearish fair value gaps lower if we do

do that and we do create those bearish

fair value gaps lower for example in

this instance right there where we also

have those lows but we create bullish

Fair value gaps higher right there then

that means that we will Target opposing

liquidity why is that because the market

is either doing one of two things

offering fair value or seeking liquidity

so if it's not offering that fair value

which that right there is fair value

then it should move higher right if it's

not doing that and it wants to continue

lower and we have bearish Fair fire gaps

then it's doing what it's seeking

liquidity so this fair value Gap right

there is the exact fair value Gap that

you want to trade off of which also

means that this fair value Gap right

there the lower fair value gaps even

that lower fair value Gap right there

are all IR relevant the value Gap that's

overlapping with the high that's the

relevant fair value Gap but why then on

this high right there we had to sting

into that lower for fire gap because

that is where now time comes in where we

have three factors we looked at that

previous candle High previous candle low

that close what is that third candle

right there doing is it closing above a

previous candle High Etc that indicates

the first step to understand that

breakway Gap then the next scenario is

understanding the fair value and then

the next understanding which we can go

over in the next video so if you want

that then please leave down a comment

and tell me if you would like that the

next step and the validating factor is

understanding time and after we continue

higher right there of course what are we

doing well we are also creating now what

daily fair value gaps higher right there

do we want to trade into those daily for

GS well if we zoom out a little bit more

then what do we see we see the same

thing happening right here with the fair

value offering right there so if if we

want to continue higher we will want to

respect these highs right there with

overlapping Fair Val gaps to then

continue higher off of that which means

that overall if we have very low fair

value gaps sitting in these lags they

are currently not relevant because if we

want to continue higher towards this

higher draw liquidity in the form of

that fap first and then afterwards even

the highs then we will want to respect

the F gaps that are overl happing with

the highs which means that everything

below that becomes what a breakaway Gap

and we confirm that with that extra

layer and to sum it up right there what

have we just done we Now understand on

the short term so in the next few

candles if price wants to trade into a f

Gap right there and we also understand

in the longer term where price wants to

trade into fi gaps does it want to trade

into the lower fi gaps into the previous

Breakaway gaps or does it want to

respect the fire gaps that are at the

fair value area right there so both on

the short term and the long term We Now

understand which fair value Gap actually

wants to be traded back into and now

imagine if we add time into the mix so

of course if you like this then you will

absolutely be blown away by the

money-making team and I have good news

because the website for the moneymaking

team is open again so we have moved to a

new website in that new website we are

working on again a lot of new features

as well to help you to excel your

learning curve so if you have any

questions about that about the new

website Etc what you can expect what's

the difference between the masterclass

and Essentials then please feel free to

reach out to info@ rio. then of course I

would also be very happy to see you

tomorrow on Sunday weekly forecast of

course the live stream here on YouTube

so make sure to turn on your

notifications 8:30 a.m. New York local

time perfect thank you