This Fair Value Gap Strategy Simplifies ICT

Summary

This video offers traders a comprehensive guide to fair value gaps, a crucial price action concept. The presenter, with 8 years of trading experience, explains what fair value gaps are, their importance in identifying market displacement, and how to discern high-probability gaps from low-probability ones. Strategies such as consistency theory, structural gaps, and reactivity theory are discussed to improve trading decisions. The video also touches on the benefits of mentorship for traders seeking to refine their skills and climb the trading learning curve more efficiently.

Takeaways

• 📈 The script discusses 'fair value gaps', a trading concept involving three-candle formations with an expansive middle candle causing a gap between the wicks of the first two candles.
• 💡 The speaker emphasizes the importance of picking the right fair value gaps to increase trading success, noting that using them incorrectly can be detrimental.
• 🔍 The video aims to teach viewers how to identify valid fair value gaps with higher probabilities of continuing or being successful in trades.
• 📊 Displacement is highlighted as a significant concept, representing a strong market push that indicates the market's desire to move towards a further target.
• 🚫 The script warns against using fair value gaps blindly, as some gaps have a higher probability of validity than others, and using them incorrectly can lead to trading losses.
• 🔑 The importance of 'consistency theory' is introduced, which differentiates between one-sided and two-sided gaps, with one-sided gaps indicating a higher probability of the market continuing in the same direction.
• 🏗️ 'Structural gaps' are explained as gaps that break market structure and are considered higher probability for success when combined with consistent candles.
• 📉 'Inflection points' are presented as additional tools for precision in trading, helping to identify key levels where the market is likely to react.
• 🔄 'Reactivity theory' is introduced for dynamic bias detection, using inverted fair value gaps (IFVGs) to understand the market's immediate direction.
• 📝 The speaker encourages traders to learn from the concepts presented and to develop their own trading strategies based on personal reasoning and market observation.
• 🏆 The video concludes with an invitation to join a mentorship program for hands-on trading experience and direct feedback, positioning mentorship as a shortcut to success in trading.

Q & A

What is the main topic of the video?

The main topic of the video is teaching viewers about fair value gaps in trading, including how to identify them, why they are important, and how to use them effectively to improve trading strategies.

What is a fair value gap according to the video?

A fair value gap is a three-candle formation with an expansive middle candle that causes a gap between the wicks of candles one and two, indicating a significant market push or displacement.

Why are fair value gaps important in trading?

Fair value gaps are important because they show market displacement, indicating a desire for the market to move towards a further target, and can be used for trade entries, stop losses, and understanding market direction.

What does the video claim about the effectiveness of fair value gaps?

The video claims that fair value gaps can be very effective when used correctly, but warns that using them incorrectly can hurt trading performance more than help.

What is displacement in the context of the video?

Displacement, in the context of the video, refers to a significant market push that moves the price and shows the market's desire to reach a further target, which is often indicated by fair value gaps.

What is the difference between one-sided gaps and two-sided gaps in the video?

One-sided gaps have consistent candles all moving in the same direction, indicating a higher probability of the market continuing in that direction. Two-sided gaps have indecisive candles with mixed directions, indicating a lower probability of the market continuing and potentially signaling a reversal.

What is a Break and Structure Gap (BSG) mentioned in the video?

A Break and Structure Gap (BSG) is a fair value gap that breaks through a significant market structure, often indicating a higher probability of the market continuing in that direction.

How can inflection points be used in conjunction with fair value gaps?

Inflection points can be used to extend the analysis of fair value gaps by providing a more precise key level where the market is expected to react, offering additional insight into potential reversals or continuations.

What is an Inverted Fair Value Gap (IFVG)?

An Inverted Fair Value Gap (IFVG) occurs when the market closes through a fair value gap, which can signal a potential reversal in market direction and provide a high-probability setup for trading entries.

What is the Reactivity Theory mentioned in the video?

Reactivity Theory is a dynamic approach to finding market bias and using order flow to understand the current market conditions, with a focus on inverted fair value gaps and their implications for immediate market direction.

What additional resources does the video offer for traders?

The video offers a mentorship program where traders can work directly with the presenter, live trading sessions, trade reviews, access to a trading psychologist, a 12-week trading launchpad, and seven mechanical trading strategies.

Outlines

00:00

📈 Introduction to Fair Value Gaps and Trading Strategies

The speaker introduces the concept of fair value gaps in trading, sharing their eight-year journey from an unprofitable trader to achieving significant financial success. They highlight the importance of recognizing fair value gaps, which are three-candle formations with an expansive middle candle causing a gap between the wicks of the first two candles. The speaker emphasizes the need to understand these gaps to avoid trading pitfalls and promises to teach viewers how to identify high-probability gaps for more effective trading decisions.

05:00

🔍 Understanding Displacement and Fair Value Gaps

This paragraph delves into the significance of displacement in the market, which is a strong push that indicates the market's desire to move towards a further target. The speaker explains how fair value gaps can be used for various trading strategies, including trade entries and stop loss placements. They also discuss the importance of identifying valid fair value gaps, as some may have a higher probability of continuing than others. The concept of internal range liquidity (IRL) to external range liquidity (ERL) is introduced, stating that price moves towards highs, lows, or fair value gaps.

10:01

📚 Objective Trading with Fair Value Gaps

The speaker addresses the objectivity of fair value gaps, contrasting them with more subjective trading concepts. They argue that fair value gaps provide a mechanical approach to trading, allowing traders to make definitive assessments about market conditions. The paragraph introduces the idea of consistency theory, which involves identifying one-sided and two-sided gaps. One-sided gaps, characterized by consistent candle movements, are highlighted as having a higher probability of continuation, making them more valuable for trading.

15:01

🔑 Key Concepts for Identifying High-Probability Gaps

The speaker presents advanced concepts for identifying high-probability fair value gaps, including structural gaps and inflection points. Break and structure gaps (BSGs) are emphasized as significant price signatures that, when combined with consistent candles, offer the highest probability of successful trades. Inflection points are introduced as a tool for precision in trading, allowing traders to anticipate reversals more accurately. The paragraph encourages traders to test these concepts and share their results, emphasizing the importance of hands-on learning and adaptation.

20:03

🤝 Mentorship and Trading Success

In the final paragraph, the speaker invites viewers to consider a mentorship program for a more direct and hands-on approach to trading. They offer a 12-week program that includes live trading, trade reviews, and access to a trading psychologist. The speaker shares success stories of participants, such as 'Edge,' who qualified for a $4,000 withdrawal. The paragraph concludes by comparing mentorship to climbing Mount Everest with a guide, suggesting that direct mentorship can significantly increase the chances of trading success.

👋 Closing Remarks and Future Engagement

The speaker concludes the video with a brief sign-off, expressing gratitude for the viewer's attention and encouraging continued engagement with future content. They remind viewers to subscribe for more educational material and to join a free trading community on Telegram for further support and networking opportunities.

Keywords

💡Fair Value Gaps

Fair Value Gaps are a three-candle formation in trading characterized by an expansive middle candle that creates a gap between the wicks of the first and second candles. They are indicative of market displacement, showing a strong push in one direction and suggesting a desire to move to a further target. In the video, the speaker discusses how to identify and utilize fair value gaps for trading, emphasizing their importance in understanding market movements and making informed trading decisions.

💡Displacement

Displacement, as mentioned in the video, refers to a significant push in the market that results in a price movement away from a particular level. It is associated with the creation of fair value gaps and indicates the market's intention to reach a new target. The concept is integral to the video's theme as it helps traders identify strong market trends and potential trading opportunities.

💡Consistency Theory

Consistency Theory is a concept introduced in the video that involves identifying one-sided gaps in fair value gaps, where all three candles move in the same direction, indicating a strong and consistent market movement. This theory is crucial for selecting high-probability fair value gaps and is exemplified in the script through various trading scenarios where one-sided gaps are highlighted as having a higher likelihood of continuation.

💡Break and Structure Gap (BSG)

A Break and Structure Gap (BSG) is a type of fair value gap that breaks through a significant market structure or level. In the video, BSGs are highlighted as high-probability events because they represent key signatures in price action, often indicating a strong market move in the direction of the gap. The speaker emphasizes the importance of combining BSGs with other concepts like consistency to identify the most reliable trading opportunities.

💡Inflection Points

Inflection Points are used in the video to describe extensions of swing points in time, serving as key levels for anticipating fair value gaps to fill. They provide traders with a more precise timing for when to expect market reversals or continuations. The concept is used to enhance the understanding of market dynamics and to improve the accuracy of trading strategies.

💡Reactivity Theory

Reactivity Theory, as discussed in the video, is a dynamic approach to identifying market bias and order flow. It involves using current market conditions to understand what the market is doing at the moment, rather than relying on outdated levels. The theory is crucial for day traders who need to make quick, informed decisions based on immediate market behavior.

💡Inverted Fair Value Gap (IFVG)

An Inverted Fair Value Gap (IFVG) occurs when the market closes through a fair value gap, indicating a potential reversal in market direction. In the video, IFVGs are used as a tool for identifying high-probability reversal setups, especially when they occur at break and structure gaps or after sweeps of liquidity.

💡Liquidity

Liquidity in the context of the video refers to the market's tendency to trade towards areas of high trading activity, known as points of liquidity. The concept is used to understand market movements and to identify potential reversal or continuation points after events like fair value gaps or manipulation.

💡Manipulation

Manipulation, as described in the video, is a market condition where price pushes through a level without forming a fair value gap, often leading to a reversal. It is a key concept for traders to recognize as it can signal a lack of strong directional movement and a potential change in market bias.

💡Internal Range Liquidity to External Range Liquidity (IRL to ERL)

The concept of Internal Range Liquidity to External Range Liquidity (IRL to ERL) posits that price moves between highs and lows or fair value gaps. It is a simple yet powerful concept that helps traders understand the market's natural tendency to oscillate between points of liquidity, which is central to the video's discussion on trading strategies.

💡Mentorship

Mentorship in the video refers to a direct, hands-on approach to learning trading, where a mentor provides personalized guidance, live trading reviews, and educational support. The speaker contrasts mentorship with self-study, likening it to climbing Mount Everest with or without a guide, to emphasize the benefits of personalized instruction for improving trading success.

Highlights

The video teaches everything about fair value gaps, including how to pick the right ones for trading.

The speaker shares personal experience transitioning from an unprofitable trader to making significant profits using fair value gaps.

Fair value gaps are identified as a three-candle formation with an expansive middle candle causing a gap between the wicks of the first two candles.

Displacement is explained as a significant market push indicating a desire for the market to move to a further target.

The video differentiates between high and low probability fair value gaps, teaching viewers how to spot the most valid ones.

The importance of market interaction with highs and lows is discussed as a key to understanding market bias and movement direction.

The concept of internal range liquidity to external range liquidity (IRL to ERL) is introduced, explaining how price moves between these points.

Fair value gaps are described as objective and mechanical, providing a factual basis for trading strategies.

Consistency Theory is introduced, emphasizing the importance of one-sided gaps with consistent candles for higher probability trades.

Two-sided gaps are identified as low probability fair value gaps, often showing indecision in the market.

Structural gaps, including break and structure gaps (BSGs), are highlighted as key signatures in price with high probability.

Inflection points are discussed as a method to be more precise with expecting reversals and identifying key levels.

Reactivity Theory is presented as a dynamic way to find bias and understand current market actions.

Inverted fair value gaps (IFVGs) are explained as indicators of market direction switch and potential reversal setups.

The video encourages traders to think for themselves and develop their own concepts based on observed market behavior.

A mentorship program is offered for traders to work directly with the speaker, including live trading, trade review, and access to a trading psychologist.

The video concludes with an invitation to join a free trading community and subscribe for more educational content.

Transcripts

if you click this video then the fair

value gaps that you are using probably

don't work well luckily for you in

today's video I'm going to teach you

absolutely everything that there is to

know about fair value gaps and most

importantly how to pick the right ones

I've been trading for 8 years and in

that time I have went from being an

unprofitable Trader who used to blow my

accounts to being able to make

life-changing money sometimes making

even over $100,000 in a single month and

over that time I have watched thousands

and thousands of candles print right in

front of my eyes and after you do that

you start to notice things I started to

notice consistencies I started to notice

Little Gems and little tricks on how to

pick the right fair value gaps which is

exactly what I'm going to teach you in

today's video but enough of the chitchat

let's go ahead and hop on a chart if you

struggle with selecting what fair value

Gap to use or you consistently fail at

picking the right fair value Gap then in

today's video I'm going to solve every

last bit of that because I'm going to

teach you absolutely everything that

there is to know about fair value gaps

we're going to go over what they are why

we use them and how to use them now a

lot of you may have this but you don't

know how to do this you don't know how

to use them right fair value gaps are

completely useless if you use them in

the wrong way and in fact they're going

to hurt your trading more than help it

so first off let's go ahead and talk

about what a fair value Gap is well a

fair value Gap is a three candle

formation with an expansive middle

candle right now that middle candle is

going to cause a gap between the Wicks

of candles one and two notice how

there's a candle here expansive candle

and then there is a gap between the

Wicks same thing here there's a candle

here expansive candle and there is a gap

between the Wicks okay that is a fair

value Gap Now Fair Value gaps show

displacement displacement is just a big

push in the market that displaces price

and this shows a desire to move to a

further Target it shows you the market

is reaching towards something now fair

value gaps can be used for everything

from higher time frame levels

directional bias trade entries and even

used for a stop loss now that being said

some fair value gaps have a higher

probability of continuing or being valid

than others in fact both of the fair

value Gap gaps you're looking at in this

picture are completely wrong now why now

you're probably saying well Jesse you

just said a fair value Gap is a three

candle formation and these are exactly

what you said and that is correct but

today's video you're going to learn why

these fair value gaps are invalid and

exactly how to spot the correct fair

value Gap so you have the highest

probability of success now let's talk

about why we use fair value gaps first

let's talk about displacement okay so

displacement which we talked a second

ago which is a big push now notice how

the market pushes through structure

we're always going to be talking talking

about the Market's interaction to highs

and lows when it comes with displacement

okay so when it comes to displacement if

we push through this level with a lot of

force creating fair value gaps go ahead

and click the link in the description to

get access to this entire board all for

free that way you can come back and

study it without having to watch the

video all over again the market is

likely to continue okay now notice up

here we have something called

manipulation well manipulation is going

to yield a reversal most of the time so

if we push through a high right here and

we don't form a fair value Gap you

notice there's no fair value gaps well

we're likely to reverse okay easiest way

to confirm displacement is with a fair

value Gap something I want you to

remember throughout this video and

throughout your trading is that how the

market reacts to highs and lows tells

you everything okay this is going to

tell you every last thing you need to

know in order of bias and which way the

market is moving because the market is

displacing as you see here we displace

what's likely to happen when we form

another swing point the Market's likely

to push down further okay and once we

manipulate and we don't form fair value

gaps through the structure right the

market is likely to do what it's likely

to reverse so anytime the market

manipulates you look for opposing

structure as a draw on liquidity now

after the market is displacing creating

fair value gaps look what happens the

market respects those fair value gaps

And Trades higher we have displacement

here displacement here then we have

manipulation and so forth right we see

that this works very well in fact you

can use this alone and make a ton of

money trading but of course we're going

to pair it with some other Concepts in

this video to make sure that you only

select the right fair value gaps because

even some of these in this picture are

low probability now I want you to go

ahead and pause this maybe take a

screenshot and pick which ones you think

are low probability to see if you get it

right for later in the

video and again you might be saying well

how are these fair value gaps if they

are not high probability well in trading

you can spot a pattern or have a

strategy but that strategy isn't going

to work every single time okay we all

know that there is no 100% win rate but

our job as Traders is to increase that

win rate as much as possible so in this

video I'm going to continuously show you

how to do that with only fair value gaps

and how to only select the highest

probability fair value gaps now another

reason why we use fair value gaps is the

concept of internal range liquidity to

external range liquidity IRL to erl is

fairly simple it just states that price

is always moving to either a high low or

a fair value Gap so if the market

recently took a high or a low it's

likely to trade into a fair value Gap

and then move back to the next point of

external range liquidity AKA highs or

lows very very simple but powerful

concept another reason why we use fair

value gaps is because they're objective

meaning that whenever we have a fair

value Gap it's either a fair value Gap

or it's not okay and all the strategies

I'm going to teach you in this video are

completely mechanical meaning that if

you or I look at the chart we can say

that that is a fact that hey there is a

fair value Gap here or hey there is a

BSG or a continuation Theory which is

what we're going to talk right in this

video they're not these subjective

different concepts that ICT Concepts

typically are right because ICT is

really hard whenever you look at like

daily bias well one person's view of

daily bias is different than another's

because it's subjective you know two

different people can look at the same

thing and it be something completely

different and there's no factual basis

to go off of to say who's right or wrong

and that is why trading is really hard

and there's a lot of guesswork in it and

it's can be very stressful for newer

Traders but I'm going to solve all of

that for you guys today in this video

all right so now let's get into the fun

stuff now these are some of the concepts

that I've learned over the last couple

years where I've watched tens of

thousands of candles print and I've seen

a lot of fair value gaps fail I've made

a lot of money from fair value gaps so I

know exactly what it takes to pick the

best fair value gaps okay so consistency

Theory we're going to break this down

into two key Concepts which is going to

be one-sided gaps and two-sided gaps now

these are the first steps to selecting

high probability gaps so let's talk

about one-sided gaps first one-sided

gaps have consistent candles well what

does that mean let's take a look at

these fair value gaps so remember a fair

value Gap is a three candle formation so

here's the candle one here's candle two

and then here's candle three what is

consistent about all of these candles

it's that they're all downo candles so

if you see we have consistency the

market is moving in a one-sided

Direction so again they all move in the

same direction now you might be asking

Jesse why is this important why does any

of this matter well it's because of

displacement if we see the market is

moving in a one-sided manner or meaning

it's moving towards the one side of the

market it's only bearish or only bullish

then it has a higher probability to

continue okay so notice right here the

market has 1 2 three bearish candles and

the market does what it continues down

to the next point of liquidity now

notice over here in these examples the

market has one two three bullish candles

okay the market is likely to continue to

the upside now I'm telling you guys this

is one of the biggest gems that you will

ever learn about fair value gaps I want

you to go test this on your charts and

you will be mindblown and this is such a

simple fix to many of you guys who take

a lot of lowquality Trades just simply

not knowing which fair value gaps to

trade from so again 1 2 three bullish

candles meaning we have a onesided gap

okay now let's look at this next example

we have one two oh this isn't a bullish

candle now I just marked this out to

show you guys that nothing is 100% I

could cherry pick the perfect examples

and just try to build my case but I

don't want to do that I'm here to

actually help you and selling you some

dream that there is a 100% win rate

strategy will do nothing but hurt you so

I want to show you that sometimes these

others fair value gaps do work okay and

we're going to talk about how to spot

when this is likely to happen using

structural gaps here in a second so

let's take a look at two sided gaps

two-sided gaps have indecisive candles

look at this we don't have a lack of

consistency we have a down closed candle

as the first candle up close and down

close these are very low probability and

when the market trades back to them it

immediately fails okay so those are low

probability fair value gaps if we look

over here we just have one down closed

candle and then we have two up Clos

candles these are still low probability

but not as low probability as this so

This is likely to fail okay if we have a

two-sided Gap not all the candles are in

the same direction and this shows a lack

of displacement the most important

concept you can understand when it comes

to trading any kind of price action

whether it's ICT or not is the lack of

displacement or the presence of

displacement because at the end of the

day if we're trading smart money we're

trying to track you know the larger

forces in the market what we're really

doing is trying to track display

placement right because we don't know

anything in the future we can only see

the market after it's happened so the

way that we're reading the footprints of

these larger forms in the market or

smart money is just big pushes that

create fair value gaps because these

create imbalances in the market because

large large buys or large sells create

an imbalance in the market so you'll see

it on the chart right so displacement is

so so important and looking at the

market from a you know a perspective of

how can I identify displacement right

that that's where my mind has gone over

the last couple years where I've really

really uh I've watched more candles I

don't even know how many I say tens of

thousands it might even be 100 thousands

consider I trade on the one minute chart

but I've watched so many candles print

and these are just some of the the

findings or some of the discoveries that

I've had and I think one of the biggest

things that you can do to become a more

successful Trader is learn to think for

yourself don't always just you know I I

want you guys to learn from these videos

and then go out and figure out your own

own Concepts right just like I've done

with ICT I've watched ICT went and

traded it and I've figured out my own

Concepts that make sense to me based on

my reasoning and that's how you actually

have confidence in what you're doing

anyways two-sided gaps have a low

probability to continue so we look for

these to fail now if we're looking for

these to fail a little trick you can do

is just look for the liquidity Beyond it

right the nearest swing point and that

could be a draw in liquidity so if you

see nothing but a bunch of inconsistency

gaps like right after this fair value

Gap failed then your bias could have

been bearish to just look for the

nearest swing point so you had a bearish

drawn liquidity and you would have just

looked to trade down now let's talk

about the second step to finding the

highest probability gaps which is

structural gaps so we're going to break

this down into two concepts which is

going to be bsgs and inflection points

okay so first let's talk about bsgs

which is a break and structure Gap now

this is very simple it's just a gap that

breaks structure now these fair value

gaps are extremely important because

they are key signatures in price this is

when the market was either continuing or

displacing or or not right so if the

market is pushing through a level and

it's creating fair value gaps that fair

value Gap should hold so these are

higher probability now if you want the

highest probability they must follow the

consistency rule that we just went over

now let's go back to that level that

worked earlier that wasn't a consistency

Rule now we had a break in structure Gap

because this fair value Gap broke

structure but we didn't have three

candles in a row now you could have

still said this is maybe medium

probability because you have one of the

two steps but when we combine both bsgs

and one-sided gaps those are the highest

probability fair value gaps okay very

very important again if we combine this

concept where we have consistent candles

with the concept that the fair value Gap

broke structure those are A+ fair value

gaps I want you to go back test on your

chart so you see it for yourself because

you can hear it from me but if you don't

see it for yourself you won't believe it

when it actually comes time to trade so

I challenge you guys go back test this

and come back to me on Twitter or

wherever with your results I know people

people have made back testing videos

even out of some of my old strategies I

encourage you guys to do it if you do it

I'll repost it on all my socials so what

happens when these fail because again

like I've said nothing is 100% so when

we have a failed BSG we can look for the

opposing swim point so notice right here

the market inverted or it closed through

that BSG so if we're inverting that high

probability Gap that is a sign that the

market is not going to continue okay at

that point you can look for the nearest

swing point just like over here we broke

structure and then this fair value Gap

that should have held was inverted now

notice how the market reacted to that

level afterwards the market dip back

down into it and went up so these can be

used as an opposing level after the

inversion now we're going to talk about

inverted fair value gaps later in this

video so stay around for that if you

don't know what that means next let's

talk about inflection points now these

are just icing on the cake when it comes

to using high probability fair value

gaps so what it is is you just extend

out the swing point in time and you can

use that as a key level so for example

if we look at this fair value Gap or

this break in structure Gap we have the

fair value Gap but the market moved

higher now when this is likely to happen

is when the fair value Gap broke

structure you're going to look for the

market to trade into that structural

point and then you have the highest

probability so that is just a way to be

a little bit more precise and when to

expect fair value gaps to fill and when

not because if you've been trading for

any amount of time you know it may be

easy when we're looking at this chart

right here but when it go when you go

into the market sometimes you don't know

the market might tap into the fair value

Gap right here like just imagine if we

didn't have anything over here how are

you going to know that the Market's

likely to not move all the way up here

well you can use inflection points right

because there's not an inflection point

that's much higher so we don't expect

the market to move much higher than that

level and it's exactly what happens

right the market consolidates a little

bit and then starts shifting down now if

we had an inflection point way up here

we would expect the market to trade

higher okay that's another very useful

tool in learning how to be precise with

where you're expecting reversals now

again now if we look right here we have

another example of this happening as

well so the inflection point plus the

breaking structure Gap equals a key

level now you should see displacement

away from this inflection point if price

is going to continue if it doesn't it

can be an early sign that that the break

and structure Gap is going to fail now

let's talk about reactivity Theory you

may have heard me talk about this in my

videos before but if you're new this is

really just a dynamic way of finding

bias and using order flow to tell you

exactly what the market is doing at the

time you're looking at it right because

that's what's important at the end of

the day if you're a day trader you want

to know what the Market's doing right

now not what it did forever ago I see so

many Traders getting stuck on using old

levels that it makes things really

confusing and overwhelming so I always

like simplifying stuff because I believe

that Simplicity scales so anyways let's

talk about the first step which is going

to be fair value gaps I think I just

said fair value gaps I meant inverted

fair value gaps sorry about that ivg

okay ifvs mean inverted fair value Gap

so an inverted fair value Gap is just

when the market closes through a fair

value Gap that's all it is so like this

itself right here like this this candle

is not an inverted fair value Gap

because it didn't close outside of the

fair value Gap however this one did okay

so whenever this happens whenever a ifv

g occurs that's cool but we want high

probability so when we think of high

probability you want to think of what

side of the market is is stronger so to

speak right I'm going to fix this

because this is killing me anyways um

but you want to think about you know are

we really strong bearish or really

strong bullish so for example if you see

a two-sided gap which we know are low

probability going back to that example

we know these fair value gaps are low

probability so let's say if that gets

inverted we know that it's very very

high probability we're going to trade

down to this nearest swing Point okay

that's a very high probability reversal

setup now another high probability

inverted fair value Gap that we can use

or a strategy to find them is when they

occur at bsgs so right here we had a

breaking structure gap which should hold

now if this doesn't hold we know the

market has switched Direction okay at

that time we can use this inverted fair

value Gap and that to tell us that the

market is now bullish okay and you can

start to look for buys now another way

you can use this is after sweeps of

liquidity meaning after manipulation

which we're going to talk about in just

a second so look right here we swept out

a high but we didn't get a fair value

Gap moving through that high so what is

that likely to be

manipulation then if we invert fair

value gaps on the way down we know this

is a high probability that the market is

now switched to becoming bearish and you

could look for for sells you can use

this level itself or you can use the

confirmation of it appearing as an entry

and then put a stop above the nearest

swing point now another one we have

right here is a sweep of liquidity and

there actually was a fair value Gap

created in this area just not as the

liquidity was swept so if that gets

inverted after a sweep of liquidity we

know the Market's likely bearish and you

can see that the market after it inverts

it Taps back up into it and moves lower

these can be used for entry or bias okay

and every time it's confirmed you're

just looking for the opposing liquidity

so for example if this was confirmed

you'd look for lower pricing and if this

was confirmed right here you could look

for this low over here as a Target okay

so you could have entered right here put

a stop loss Above This high and Target a

lower now you want to use this with

other Concepts most of the time to get a

higher risk to reward but that is the

idea behind it if you made it this far I

want to say congratulations because you

have the attention span that is further

than most peoples because most people

don't watch full YouTube videos so

congratulations on that and also if

you're super serious about trading and

you want to work directly with a mentor

then I want you to go ahead and click

the link in the description where you

can trade with me live I'll review every

single one of your trades to make sure

that you're doing things correctly and

call out your mistakes also you'll be

meeting with a trading psychologist

every single week you get a full 12-week

Launchpad showing you everything from

the basics of trading all the way to

entering a trade and learning how to

scale your risk learning how to back

test and journal and everything else

that comes with the business of trading

also you get seven mechanical trading

strategies where I give you full

step-by-step Trading plans and again I'm

going to be trading them with you live

and reviewing your trades to make sure

that you're doing it correctly now we

have Edge right here who's been

absolutely killing it he just qualified

for a $4,000 withdrawal and he actually

took the payout now the reason I show

you this and you can see the date this

is literally yesterday I'm recording

this on the second it's super super

important that people are actually

getting payouts now funded certificates

are great as well and we have a lot of

people who are getting funded very early

on in the program but at the end of the

day what really matters is getting

payouts because you see a lot of people

posting funded certificates and then

they just blow the account um so I just

wanted to show you guys this as some

motivation now whether or not you decide

to work in the mentorship totally fine

I'm going to continue to post videos

here on YouTube and at the end of the

day you don't need mentorship to succeed

I'll be transparent it's just a shortcut

to have somebody right there with you

answering your questions and trading the

concepts that you learn live I want you

to think of mentorship like this now you

see this book how to climb Mount Everest

this guy has climb Mount Everest

multiple times now obviously he knows

everything about climbing Mount Everest

if you read this book you're going to

learn too he's put it all into a book

now what do you think your odds of

success are if you read the book and

then you just go try to climb Mount

Everest probably very low it's probably

going to take you a lot of times trying

to climb the mountain falling down

having to give up um if you make it and

then you have to restart and you learn

it on your own now that is kind of like

trading because trading is pretty pretty

hard as well so again you don't have to

meet with this guy to learn how to climb

out Everest but think about it in the

sense that if you did work with him

right over his shoulder every single day

for 12 weeks you train to climb Mount

Everest what do you think the odds of

success are if you do that compared to

if you just read the book that's the way

I like to put mentorship because at the

end of the day you don't need this book

to climb Mount Everest tons of people

have done it without reading it it's

just a little bit of a short cut and it

makes things a little bit easier so if

you want to work with me directly go

ahead and click the link in the

description to apply to become a funded

Trader in 12 weeks now regardless if you

do that make sure to subscribe to the

YouTube I'll be posting tons of free

educational content I'll also leave a

link down to my free trading Community

which is the telegram in the description

and thank you guys for watching this

video I'll see you in the next one