11 Tweets 119 reads May 07, 2024
To effectively trade ICT you need a deep understanding of fair value gaps.
In this thread you will learn things you haven't seen anywhere else
Things that I've noticed over the last 8 years I've spent in the markets
[๐Ÿงต thread]
To be clear:
This thread is NOT
- going to turn you into a successful trader overnight
- going to do anything if you don't implement
- the holy grail, because there isn't one
These are just insights that I've learned in my career.
Let's get started:
First things first, what is a fair value gap?
Fair value gaps (FVG) are a 3 candle formation in which candle 2 is expansive, leaving a gap between candles 1 and 3.
FVG can be used for
1. HTF key levels
2. Finding directional bias
3. Trade Entries
4. Stop losses
FVG are all you need.
Why are FVG so powerful?
They visualize displacement.
Displacement tells you everything you need to know.
It's what ICT is based on.
Displacement = continuation
Manipulation = reversal
On top of that, the market is always doing 1 of 2 things
- rebalancing FVG
- moving to high/low
Once you unsee this, price becomes clear.
How do we confirm moves from FVGs?
Using a lower time frame market maker model (mmxm)
MMXM are simpler than you think, the key is knowing where to look.
HTF key level (fvg, high/low) = LTF mmxm
Study the diagram, follow me as well because I'll write a thread on them next.
Now that you understand FVGs, let's dive into how to find the highest probability ones.
Before we go any further, make sure to bookmark this tweet as I will be going on private soon,
That way you don't lose access.
Let's continue
Consistency theory is something that my eyes have noticed after watching tens of thousands of candles print.
One sided gaps, made up of candles moving in one direction = high probability.
Two sided gaps, made up of both bullish and bearish candles, are lower probability.
Structural gaps (BSG) = FVG that break structure
These are valuable tools whether or not they're respected.
BSG are great tools to identify if the trend is continuing
If they aren't respected, expect every other FVG in that price leg to fall
Target the high/low
Inverted FVGs (iFVG) are also very strong tools.
The highest probability iFVGs occur
- After sweeps of liquidity
- At BSGs
- At two-sided gaps
If iFVG is confirmed at these levels, look for opposing liquidity
If you want to trade these concepts with me live 3 days per week
With me watching over your shoulder calling out trades
Reviewing your trade journal
Giving you the strategies my students and I have used to generate multiple 7 figures
DM me "blueprint" and we'll get to work
Make sure to follow and RT if this gave you value
Comment with your backtests of what you learned
Always remember that information without implementation is useless
๐Ÿ‘ป

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