Fair Value Gap | #ICT
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How to utilize FVG properly:
$ES_F $NQ_F
How to utilize FVG properly:
$ES_F $NQ_F
FVG | Explained
Identified by noting the body of a candle stick which has not been violated by the previous and following wicks
Acts as an imbalanced area where inefficient price action takes place and can be used as both entries on retracements or targets as a draw on price
Identified by noting the body of a candle stick which has not been violated by the previous and following wicks
Acts as an imbalanced area where inefficient price action takes place and can be used as both entries on retracements or targets as a draw on price
Many are drawn to FVG as they are a simple concept at face value, however not all hold the same amount of significance
Understand that FVG are simply a vehicle to get entries on a trade, ONLY when external factors line up with the context of its placement
Market Structure
Entries within a FVG must be in confluence with the current structure of the market
When market structure holds bullish, watch entries on the long side. When market structure holds bearish, watch entries on the short side
Entries within a FVG must be in confluence with the current structure of the market
When market structure holds bullish, watch entries on the long side. When market structure holds bearish, watch entries on the short side
Draw on Liquidity
Avoid going long in a FVG before sellside liquidity is ran and avoid going short before buyside liquidity is ran
Price is meant to deliver liquidity in order for positions to be unloaded. Noting where liquidity is purged hints at directional price delivery
Avoid going long in a FVG before sellside liquidity is ran and avoid going short before buyside liquidity is ran
Price is meant to deliver liquidity in order for positions to be unloaded. Noting where liquidity is purged hints at directional price delivery
Premium | Discount
The market is always seeking discounted prices. Any FVG which is trading within a premium on the long or short side are not considered for entries
Market makers are entering their positions cheap and so should you
The market is always seeking discounted prices. Any FVG which is trading within a premium on the long or short side are not considered for entries
Market makers are entering their positions cheap and so should you
Rebalancing | Failed Price Swing
Imagine imbalances in price as gap fills in equity markets. Price is constantly looking to fill or “rebalance” existing FVG
Watch for price to rebalance a FVG, but fail to break structure. This is a signal that price wants to seek continuation
Imagine imbalances in price as gap fills in equity markets. Price is constantly looking to fill or “rebalance” existing FVG
Watch for price to rebalance a FVG, but fail to break structure. This is a signal that price wants to seek continuation
Complete Setup
Once you identify each element, you will have narrowed multiple fair value gaps within a trading range to a single one which holds the significance on price
Check off each step and find your entries hold greater value
Once you identify each element, you will have narrowed multiple fair value gaps within a trading range to a single one which holds the significance on price
Check off each step and find your entries hold greater value
Part 1 - Extension of this thread: https://twitter.com/_amtrades/status/1532139297691815937">https://twitter.com/_amtrades...
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