Identifying High Probability Fair Value Gaps:
1. Context - the main fundamental rule is that the FVG we are looking to trade should be in the context of the timeframes above it.
1. Context - the main fundamental rule is that the FVG we are looking to trade should be in the context of the timeframes above it.
Why did the Daily FVG in CAD/CHF not hold?
IT WAS NOT IN CONTEXT OF TIMEFRAME ABOVE IT
We can see that there was a Weekly FVG hovering below
it.The bigger the timeframe, the stronger the FVG.
Price disrespected the Daily FVG to target the Weekly FVG which is the strongest one.
IT WAS NOT IN CONTEXT OF TIMEFRAME ABOVE IT
We can see that there was a Weekly FVG hovering below
it.The bigger the timeframe, the stronger the FVG.
Price disrespected the Daily FVG to target the Weekly FVG which is the strongest one.
2- 2nd FVG out of HTF PD array:
The second FVG created from a HTF PD array is the HIGHEST PROPABILITY FVG. It is this FVG that confirms change in orderflow which makes it highly likely to hold
The second FVG created from a HTF PD array is the HIGHEST PROPABILITY FVG. It is this FVG that confirms change in orderflow which makes it highly likely to hold
3- FVG disrespecting opposite FVGs:
We can see that there is a huge bearish FVG coming into the weekly Bullish FVG. Look at how price disrespects the Bearish FVG and creating new H4 Bullish FVGs. These Bullish FVG's show early indications of market's intentions to be Bullish.
We can see that there is a huge bearish FVG coming into the weekly Bullish FVG. Look at how price disrespects the Bearish FVG and creating new H4 Bullish FVGs. These Bullish FVG's show early indications of market's intentions to be Bullish.
4 - Stacked FVGs:
When price wants to retrace ,what if there are more than one FVG that price can use to displace ? At these instances, pay attention to the FVG which is overlapping with another PD array
When price wants to retrace ,what if there are more than one FVG that price can use to displace ? At these instances, pay attention to the FVG which is overlapping with another PD array
5 - Quick reaction from the FVG:
Generally, Price should not spend much time in the Fair Value Gap. In this example , we can see how price consolidated near the Daily FVG and How quickly price displaced away from the weekly FVG
Generally, Price should not spend much time in the Fair Value Gap. In this example , we can see how price consolidated near the Daily FVG and How quickly price displaced away from the weekly FVG
Let's look at today's price action and see some of the principles discussed in live markets
The H4 FVG is in context of timeframes above it as there are currently no Daily or weekly FVGs that price could target and bearish orderflow confirmed in lower timeframe alsoβ .
The H4 FVG is in context of timeframes above it as there are currently no Daily or weekly FVGs that price could target and bearish orderflow confirmed in lower timeframe alsoβ .
Remember, the creation/ non creating of a fvg also tells a story. Study how FVGs are created coming in and out of a HTF PD array to get more insights.
Like, Retweet and Follow me for more Educational Threadsβ€οΈ
For more detailed information watch:
youtube.com
Like, Retweet and Follow me for more Educational Threadsβ€οΈ
For more detailed information watch:
youtube.com
Loading suggestions...