Boot Camp Day 14: Fair Value Gaps Pt. 1 — Transcript

Full transcript

1. 0:00all right this is attempt number two to
2. 0:03make this video
3. 0:04um we are currently in Miami right now
4. 0:06and I recorded this
5. 0:08I recorded this
6. 0:09um out on the balcony but my uh computer
7. 0:12overheated so this is going to be take
8. 0:15two and probably a sloppier version of
9. 0:18it but uh what's good Jets uh welcome to
10. 0:21[ __ ] boot camp day I don't even know
11. 0:2516 or 15 maybe four I have no clue what
12. 0:29day it is
13. 0:30um but yeah we're in this [ __ ] I think
14. 0:32we tapped it what like uh we've stopped
15. 0:36two weeks now right
16. 0:38um but anyways today we're talking about
17. 0:40fair value gaps
18. 0:42um liquidity voids imbalances whatever
19. 0:45you guys want to call them in the market
20. 0:46and most of the time we would do this on
21. 0:49like a little chart but as you guys know
22. 0:51how we've been setting like this whole
23. 0:52[ __ ] up uh for you know this boot camp
24. 0:56I'm pretty much going to split up all
25. 0:58those little building blocks into three
26. 1:00separate videos
27. 1:02um just so you guys have like a chance
28. 1:03to take everything in and like actually
29. 1:04properly understand the [ __ ]
30. 1:07um so today it's literally just gonna be
31. 1:08one-on-one me explaining what fair value
32. 1:11gaps are why we want to use them how we
33. 1:14can understand them in the market to you
34. 1:16know actually be confident in taking a
35. 1:19trade based off of it because for me I
36. 1:21would much rather you know have a uh
37. 1:25take a trade based off of actual like
38. 1:27Market Confluence and orders being
39. 1:29filled and actually seeing that versus
40. 1:31oh it bounced off a floor or like it hit
41. 1:34a ceiling so it's going to go down like
42. 1:37are we being dead ass about that off of
43. 1:38a drawing that you put on chart you know
44. 1:40like I have no hate towards supporting
45. 1:42resistance Traders it just doesn't make
46. 1:43sense to me why you would you know
47. 1:45essentially bet on something
48. 1:47um like that but I mean hey some people
49. 1:49make money doing it this just makes more
50. 1:51sense to me it makes me feel safer about
51. 1:52putting money into the market so with
52. 1:55that being said let's get into fair
53. 1:57value gaps part [ __ ] one boys
54. 2:00um so what is a fair value Gap what's a
55. 2:03liquidity void what's an imbalance it's
56. 2:05literally all of those are pretty much
57. 2:07the same thing so I like to call it just
58. 2:09a liquidity void so similar to how we
59. 2:12talked about liquidity in those past
60. 2:13three trading videos that's where you
61. 2:16know orders are residing that's where
62. 2:17Market wants to Target to take out those
63. 2:19orders to execute those orders at this
64. 2:21certain price point this is quite
65. 2:23literally the opposite this is a void a
66. 2:26price range where there are no no
67. 2:29contradicting orders so if we see a big
68. 2:32move up right why are we seeing that
69. 2:35move up in the first place because
70. 2:36there's no sell orders through that
71. 2:38price range that's the that's the
72. 2:40liquidity void that's the imbalance
73. 2:41that's the fair value Gap same thing to
74. 2:43the downside right if we see a big drop
75. 2:44to the downside with no like hesitation
76. 2:47and it just dumps right that's a
77. 2:49liquidity void that's the imbalance and
78. 2:51why is why is it a liquidity void
79. 2:53because there's literally no no resting
80. 2:55buy orders throughout that massive drop
81. 2:57down if there were resting buy orders
82. 2:59price would go down oh pull up a little
83. 3:01bit go down a little bit more yes maybe
84. 3:03it's bearish and it still closes bearish
85. 3:05but there's still resting buy orders so
86. 3:07this is what
87. 3:09um it helps us do we can actually be
88. 3:11able to spot where there is no liquidity
89. 3:13on the market and if we think about this
90. 3:15logically right when we're within a
91. 3:17trend and price obviously moves with
92. 3:19higher highs and higher lows where are
93. 3:22those higher lows going to draw to where
94. 3:23are those retracements going to draw to
95. 3:25you know probably into those areas that
96. 3:29where liquidity was not before right and
97. 3:32then what's going to happen once we get
98. 3:34into those areas market makers can
99. 3:36execute their orders because they know
100. 3:37right there is a emptiness of liquidity
101. 3:40they know that right when they Place
102. 3:42their orders within there Market's going
103. 3:43to move in their Direction so how is
104. 3:45this beneficial to us how can we you
105. 3:47know we'll talk about how we can spot it
106. 3:48in two days on the next trading video
107. 3:51but why is this beneficial to us one it
108. 3:54helps us accurately kind of understand
109. 3:55okay where does price want to draw to
110. 3:58when it's retracing right fair value
111. 4:00gaps are used for retracements I don't
112. 4:01use fair value gas for
113. 4:03like entries necessarily I use liquidity
114. 4:08sweeps to understand where Market's
115. 4:10going and then I use fair value gaps to
116. 4:13kind of like
117. 4:14figure out where price maybe wants to
118. 4:16draw to or for like a secondary entry
119. 4:18and we'll go into all of that stuff once
120. 4:20we get deeper into strategy but
121. 4:23um this is super useful because we see
122. 4:26price in an uptrend drawing back down
123. 4:28and we can find a liquidity void and
124. 4:30then we see a reaction off of that or
125. 4:32like a breaker structure on a lower time
126. 4:34frame boom like why wouldn't you execute
127. 4:36that because you know there's a lack of
128. 4:38orders lying within there you know the
129. 4:39trend is going up and if you see a
130. 4:41breaker structure on a smaller time
131. 4:43frame after a fair value gap or an
132. 4:45imbalance or liquidity void getting
133. 4:47filled on a larger time frame why
134. 4:49wouldn't you enter there you know that's
135. 4:51literally you know you see okay prices
136. 4:53in this range where there's a lack of
137. 4:55liquidity for opposing orders right if
138. 4:58we're in an uptrend there's no sell
139. 4:59orders laying within here and then we
140. 5:01see a breaker Market structure on a
141. 5:02lower time frame why wouldn't you
142. 5:04execute right doesn't that make so much
143. 5:06sense for you to execute on a trade like
144. 5:08that versus oh price hit
145. 5:12my
146. 5:13[ __ ] ceiling are we being dead ass
147. 5:16right now like let's use our let's use
148. 5:19our brains okay
149. 5:21um so I mean with that being said that's
150. 5:23that that literally is what what fair
151. 5:25value gaps are it's literally just a
152. 5:27lack of orders within the market and
153. 5:28that's what causes the imbalance to be
154. 5:30made the
155. 5:31um the big ass candle right you guys are
156. 5:34and we'll talk about how to spot them in
157. 5:35two days but when you guys like see them
158. 5:38within the market most the time it's a
159. 5:40big candle down why because there's
160. 5:41literally no orders stopping it from
161. 5:43dropping that far down
162. 5:45um same thing with the upside there's no
163. 5:47sell orders within there that's stopping
164. 5:48it from pushing so high up
165. 5:50um and then when price comes back into
166. 5:52that range
167. 5:53right it gives the market makers to you
168. 5:55know the opportunity to keep pushing
169. 5:57price in the direction that they want to
170. 5:59um and again once we start getting all
171. 6:02these pieces it's like you know I'm sure
172. 6:04even after this video you'll you guys
173. 6:07were so we'll start looking into that
174. 6:08even more by just seeing okay we got
175. 6:10liquidity sweep breaker structure we see
176. 6:13the trend starting to form and then okay
177. 6:15now I have a fair value Gap oh I notice
178. 6:17it gets filled smaller time frame break
179. 6:19of structure boom we're in okay and it's
180. 6:23it's literally as simple as that like
181. 6:24that people really make trading a lot
182. 6:26harder than it has to be and you guys
183. 6:28can really [ __ ] simplify it if you
184. 6:30just say okay this is exactly how price
185. 6:33moves you know what do we use for Value
186. 6:35gaps for retracements cool when we see a
187. 6:38retracement in the market figure out
188. 6:39where the imbalance is scale down to a
189. 6:41lower time frame find a break of
190. 6:43structure continuation boom like come on
191. 6:46like that [ __ ] is so easy
192. 6:48um and then you know liquidity sweeps
193. 6:50okay we see liquidity taken out of the
194. 6:51market okay if we see a breakup
195. 6:53structure perfect execute right all of
196. 6:55these building blocks we I pretty much
197. 6:57have the set up so it's like one size
198. 6:58fits all right you can trade this on any
199. 7:00time frame you can trade this
200. 7:02with any [ __ ] pair right you can
201. 7:05literally apply these Concepts to every
202. 7:07Financial Market
203. 7:08um because this is how price literally
204. 7:10moves this is how the market moves and
205. 7:13that's why I love the way that I trade
206. 7:14because you can do this on any time
207. 7:15frame if you can't sit on your computer
208. 7:17for like two hours a day
209. 7:20um you know like scalping or like you
210. 7:23know actually monitoring it you can do
211. 7:24swing trades where it takes several days
212. 7:26to hit
213. 7:27um and as we start adding all the
214. 7:29building blocks you'll start to see like
215. 7:31okay I can use this I can use this and I
216. 7:34don't really understand this so I don't
217. 7:35need it right that's the nice thing
218. 7:37about this all of these are pretty much
219. 7:38execution like pieces and it's just like
220. 7:42which ones you want to use and the more
221. 7:44that you know the better because then
222. 7:45it's like holy [ __ ] now I have like five
223. 7:47different confirmations that I can go
224. 7:49off of that are all very high Confluence
225. 7:51and that are all based off of actually
226. 7:52like Market execution and orders being
227. 7:54filled who wouldn't want to place a bet
228. 7:58on that that's why I love trading
229. 7:59because I can be like okay yeah I'm
230. 8:00actually going to bet on this because I
231. 8:02actually believe in this versus you know
232. 8:05oh like I think it's going to go down
233. 8:07because it you know like hit a ceiling
234. 8:10just [ __ ] don't make no sense
235. 8:12um so with that being said
236. 8:14that's where value gaps explained we'll
237. 8:16talk about how to spot them tomorrow no
238. 8:18homework today
239. 8:20um actually the only homework you have
240. 8:22to do is like do something that's
241. 8:24actually productive
242. 8:26um don't sit around
243. 8:28um I mean if you're watching this video
244. 8:29odds are you're doing something
245. 8:31productive right now but
246. 8:33um do something else after this video so
247. 8:35you watch this video go take notes go on
248. 8:37a run go to the gym do something that's
249. 8:39hard do something that's uncomfortable
250. 8:41trust that's where you grow all right
251. 8:43when you put yourself in uncomfortable
252. 8:44situations that's where the growth
253. 8:46begins and amen I'm still trying to you
254. 8:48know get uncomfortable even while on
255. 8:50vacation we're in Miami right now I very
256. 8:52well could have just said like yo the
257. 8:54Wi-Fi's ass
258. 8:56um I don't want to upload this video but
259. 8:58here I am on vacation making a [ __ ]
260. 9:00video and uploading it on ass Wi-Fi so
261. 9:05um and and then after this it's like
262. 9:07cool now I feel accomplished I feel okay
263. 9:09with myself like I feel proud of myself
264. 9:10I've got something good done for today
265. 9:12and then I can go have my fun like
266. 9:14there's there's a there's a perfect
267. 9:16balance of having fun and actual work
268. 9:17like and to be able to understand that
269. 9:19like if you're working 24 7 that's why I
270. 9:21always say like take one day off if
271. 9:23you're working 24 7 bro you're going to
272. 9:25get burnt out you need a good balance
273. 9:27but it's also like you can't just say oh
274. 9:29yeah I want my balance and then just
275. 9:31like not actually work right there's
276. 9:33there's you know you you know the
277. 9:35difference
278. 9:36um but yeah that being said go do
279. 9:38something fun uh do something productive
280. 9:40and then go do something fun
281. 9:43um I'll see you guys tomorrow when we
282. 9:45talk more about discipline and how we
283. 9:47can you know actually start [ __ ]
284. 9:49whipping your ass into shape because we
285. 9:51know how [ __ ] terrible you guys are
286. 9:53at staying disciplined Within These
287. 9:54markets so hopefully we can start
288. 9:56talking about some tips some tricks some
289. 9:58actual exercises
290. 10:00um for you guys to start practicing to
291. 10:02you know actually get you in mind so
292. 10:04that being said I'll see you boys
293. 10:05tomorrow peace out