Consequent Encroachment of a Fair Value Gap

Summary

In this video, the channel provides an introduction to ICT trading concepts, focusing on the importance of Fair Value Gaps (FVGs) in trade entry. The video explains the concept of Consequent Encroachment, where traders should enter trades at the 50% level of large Fair Value Gaps rather than at the tips. Through examples, the video demonstrates how to effectively use this technique to enter trades in a trend continuation pattern. The video concludes with an invitation to join a free cryptocurrency signal community for further learning and updates on trade opportunities.

Takeaways

• 😀 The channel focuses on helping beginners learn the ICT concept, offering basic to advanced level knowledge.
• 😀 The best place to learn the ICT concept is from ICT himself, but this channel is a helpful resource for those struggling with the material.
• 😀 The channel organizes videos into playlists for beginners, intermediates, and advanced learners.
• 😀 Fair Value Gaps (FVGs) are crucial in trade, especially for those using them to make entries.
• 😀 The Consequent Encroachment (CE) of a Fair Value Gap is a key concept to understand for trade entries.
• 😀 Not every part of a Fair Value Gap should be used for trade; the placement and type of gap matter.
• 😀 The Consequent Encroachment is the 50% mark of a Fair Value Gap and should be the primary entry point when the gap is large.
• 😀 For a trend continuation pattern, it's advisable to take trades from the Consequent Encroachment rather than the tip of a Fair Value Gap.
• 😀 For small Fair Value Gaps, trades can be taken from the tip, without waiting for the Consequent Encroachment.
• 😀 Checking charts and looking for Consequent Encroachment levels in Fair Value Gaps is important for successful trade entries.
• 😀 The channel offers free cryptocurrency signals, with a community available for those who sign up through a Buybit link.

Q & A

What is the main focus of this YouTube channel?

The main focus of this YouTube channel is to help beginners understand and apply ICT (Inner Circle Trader) concepts, specifically in trading, with a focus on Fair Value Gaps and their practical applications.

What is a Fair Value Gap (FVG)?

A Fair Value Gap (FVG) is created by a three-candle price action, where there is a gap between the low of one candle and the high of the next. This gap acts as an important reference point for trade entries.

What is the significance of the 50% level in a Fair Value Gap?

The 50% level of a Fair Value Gap is referred to as the 'Consequent Encroachment.' It is considered the optimal point to enter a trade, as it provides a better confirmation of price movement and a higher probability of a successful trade.

When should traders enter a trade in a large Fair Value Gap?

In the case of a large Fair Value Gap, traders are advised to wait for the price to return to the 50% level of the gap (Consequent Encroachment) before entering a trade, as this is typically a more reliable entry point.

Is it always necessary to wait for the 50% level to enter a trade?

No, it is not always necessary. For smaller Fair Value Gaps, traders can enter directly at the tip of the gap without waiting for the 50% level.

What is meant by the term 'Consequent Encroachment'?

Consequent Encroachment refers to the 50% level within a Fair Value Gap. It is considered the ideal entry point for traders, especially when the gap is large, as it offers better price confirmation and increases the chances of a successful trade.

How can a trader determine the Consequent Encroachment point on a chart?

To determine the Consequent Encroachment point, a trader should measure the entire Fair Value Gap and identify the 50% level of the gap. This point is the optimal area to enter a trade.

Why is the Consequent Encroachment important for traders?

The Consequent Encroachment is important because it helps traders enter trades at a more favorable price level, which can increase the probability of a successful trade, especially when dealing with large Fair Value Gaps.

What happens when price fills up a weak Fair Value Gap?

When price fills up a weak Fair Value Gap, it is more likely to continue towards the Consequent Encroachment. This reinforces the importance of considering the 50% level for trade entries.

What is the purpose of the cryptocurrency signal community mentioned in the video?

The cryptocurrency signal community provides free trading signals to help traders make informed decisions in the cryptocurrency market. Viewers can join by signing up with a specific Buybit link provided in the video description.