Boot Camp Day 16: FVG Pt. 2 — Transcript

Full transcript

1. 0:06foreign
2. 0:07guys welcome I'm sorry for the late
3. 0:11video hopefully some of you guys are
4. 0:13still awake if not I'm sorry this is
5. 0:15coming to you guys late
6. 0:17um I have had zero hours of sleep
7. 0:21um I'm in Miami obviously
8. 0:23um and I'm still going to keep my
9. 0:26promise of uploading a video every
10. 0:27single day I wish I could take a nap
11. 0:29right now but I'm not going to let
12. 0:30myself do that because you guys have
13. 0:32[ __ ] to learn and
14. 0:35that's what we're here for so with that
15. 0:37being said let's just jump right on into
16. 0:40it okay I believe today hold on actually
17. 0:44I I don't want to get this wrong
18. 0:47I believe today is fair value gaps part
19. 0:49two
20. 0:51let me double check the the YouTube
21. 0:52channel for a second
22. 0:58yes let's go okay today is
23. 1:01um is identify or sorry fair value gaps
24. 1:04part two okay so today we're going to be
25. 1:06talking about how we can identify them
26. 1:09um and then also you know like showing
27. 1:10how you could potentially take a trade
28. 1:12or really today's just going to be
29. 1:14identifying and then day three is going
30. 1:16to be how you can take trades and how
31. 1:17you can put it together with liquidity
32. 1:18sweep breaker structure Bing Bong boom
33. 1:21all that stuff today is literally just
34. 1:23going to be identifying them
35. 1:24understanding what they're used for
36. 1:25doing a little bit recap of that
37. 1:27um should be relatively quick should be
38. 1:29relatively easy so um with that being
39. 1:31said let's jump right into it so we'll
40. 1:33first do a quick little summary also
41. 1:35please forgive me if I you know mess up
42. 1:38like I I literally I've gone
43. 1:41almost like 48 hours with no sleep
44. 1:44um and obviously my voice is gone and
45. 1:46I've been doing a bunch of stuff so if I
46. 1:47if I mess up bear with me anyways
47. 1:51um uh what was that what was it yeah
48. 1:53let's let's jump right into it okay so
49. 1:55first we'll do a quick little recap what
50. 1:57are fair value gaps what are liquidity
51. 1:59voids what are imbalances it's literally
52. 2:01where there is a lack of liquidity
53. 2:03meaning there are no resting orders in
54. 2:05the opposite in the opposite direction
55. 2:06of wherever price wants to go so with
56. 2:09that being said right price comes down
57. 2:11into that liquidity void into that
58. 2:13imbalance into that for Value Gap where
59. 2:15there are no right resisting orders and
60. 2:18then we can place more orders but Market
61. 2:20is going to move and Market is going to
62. 2:21react why because there was a lack of
63. 2:23liquidity within that area that gives us
64. 2:26the opportunity and the ability to you
65. 2:29know take a
66. 2:30take uh sorry move the market oh I can't
67. 2:34dude I'm sorry
68. 2:36um messing up but more focused all right
69. 2:39so with that being said right we
70. 2:41understand that okay fair value gaps are
71. 2:43essentially a liquidity void within the
72. 2:45market where Market will probably draw
73. 2:47to and then react off of in that
74. 2:49essentially what it is it's literally
75. 2:51just an imbalance a liquidity void price
76. 2:53draws back down into that why because
77. 2:55there's no resting sell orders there's
78. 2:56no resting buy orders in the opposite
79. 2:59direction of wherever the price is
80. 3:00trending which in turn makes fair value
81. 3:03gaps a retracement
82. 3:05um a retracement tool essentially it
83. 3:08helps you find trades off of
84. 3:09retracements and as we start getting
85. 3:10deeper into this we'll start explaining
86. 3:13you know all that [ __ ] about how you can
87. 3:17um how you can you know use these but
88. 3:20something to note
89. 3:22fair value gaps are not reversals fair
90. 3:26value gaps are not used for reversals so
91. 3:29if we see Market trending higher and
92. 3:30higher
93. 3:32if we see Market going higher higher
94. 3:33higher higher right breaking higher
95. 3:35highs and higher lows
96. 3:39we see market doing that
97. 3:41we are looking for fair value yet we are
98. 3:43looking for bullish fair value gaps okay
99. 3:45and we'll talk about where to find them
100. 3:46but in this case right we're bullish so
101. 3:49what are we looking for we're not
102. 3:50looking for bears for Value gaps to turn
103. 3:52price around we're looking for
104. 3:53retracements into these bullish for
105. 3:56Value gaps for reactions
106. 3:59okay and continuations that's
107. 4:01essentially what this what fair value
108. 4:03gaps and equilibrium are used for it's
109. 4:05continuations and retracements okay so
110. 4:08with that being said now let's talk
111. 4:10about how we can identify them fair
112. 4:12value gaps are essentially or imbalances
113. 4:13are essentially a three candle pattern
114. 4:15the first candle okay which looks like
115. 4:19this shrink okay and then the second
116. 4:22candle which is the candle that creates
117. 4:24the imbalance essentially
118. 4:25will be like super full like this and
119. 4:27then the third candle which
120. 4:30looks a little something like this okay
121. 4:34and
122. 4:36a fair value Gap looks something like
123. 4:38this
124. 4:46okay so what is the area of fair value
125. 4:49what is the area that has not been
126. 4:52filled right that didn't have any you
127. 4:54know
128. 4:55um resistance um resting orders right we
129. 4:57see this right and we'll show examples
130. 4:59of this on the chart but we see this
131. 5:01candle right massive up candle right and
132. 5:05no resistance in between and and how do
133. 5:07we know there's no resistance through
134. 5:09the Wicks okay so this is a three candle
135. 5:10pattern and essentially we find the
136. 5:15liquidity void we find the you know area
137. 5:17and price range of fair value by
138. 5:19measuring it off of in in for for
139. 5:23bullish fair value gaps it's from the
140. 5:25top
141. 5:26of the first candle's wig to the bottom
142. 5:30of the third candle's Wick and then you
143. 5:33know you draw your box or whatever your
144. 5:36Gan box
145. 5:37your rectangle
146. 5:39you draw it right just like that boom
147. 5:42from here up to there wait for price to
148. 5:44fill wait for price to react so now my
149. 5:47shitty ass drawings can get removed and
150. 5:49we can actually see this happening on
151. 5:52the charts and you know like actually
152. 5:53see what it looks like so this is a
153. 5:56perfect example okay we get a breaker
154. 5:58structure we're confirmed bullish now
155. 5:59okay we know that we're bullish okay
156. 6:01what is this we have a massive candle
157. 6:05with no right look this no Wicks no
158. 6:09Wicks filling this so what does that
159. 6:11make this a fair value Gap right there
160. 6:13is a liquidity void what does price do
161. 6:14draw into it chop chop chop break
162. 6:16structure rally okay perfect example for
163. 6:20Value Gap getting used boom bullish
164. 6:25right bullish for Value Gap rally okay
165. 6:28it's actually very easy to spot these in
166. 6:30the market you literally just look for
167. 6:32you know areas that do not have do not
168. 6:36have Wicks covering in that covering it
169. 6:37so for this one for example
170. 6:39[Music]
171. 6:41sorry this one for example we have boom
172. 6:45right from a bearish gap we have it from
173. 6:49the bottom of the first candles Wicks to
174. 6:52the top of the third candle's Wick like
175. 6:55this right we can see boom bottom of
176. 6:57this candle's wig to the top of this
177. 6:59candle's wig we see price come in chop
178. 7:02chop chop fill drop
179. 7:04okay right how do we know it's going to
180. 7:06be bearish we had a breakup structure
181. 7:07right here confirming a bear's bias what
182. 7:09were you looking for we're looking for
183. 7:11retracements okay we retrace onto this
184. 7:13into this fair value Gap we continue
185. 7:14lower
186. 7:15this is as easy as it gets this should
187. 7:18be one of the easiest Concepts to to use
188. 7:20however because it is such a freaking
189. 7:24easy concept to use
190. 7:26you have to understand that it is it
191. 7:29isn't necessarily
192. 7:31as valuable as you may think okay so
193. 7:37you you can you can find these literally
194. 7:40every single every everywhere on charts
195. 7:43right we could you know oh for Valley
196. 7:45Gap right here we have her value Gap
197. 7:50right here we have everybody Gap
198. 7:55right here right and the issue that I
199. 7:57have with this is when people execute
200. 8:00purely off of just the fair value Gap
201. 8:02getting hit and without a reaction wait
202. 8:04for a reaction or scale down to a lower
203. 8:07time frame see a breaker structure see a
204. 8:10change in Market structure shift or just
205. 8:12a reaction like with a bullish candle or
206. 8:13a bearish candle whatever Direction
207. 8:15you're trying to see it go and let that
208. 8:18be your confirmation to enter okay be
209. 8:20very patient with these because they're
210. 8:22all over the chart and it's really easy
211. 8:24to get kind of caught up in them and be
212. 8:26like oh they're probably got pair if I
213. 8:28probably got pair all these are going to
214. 8:30work and it's like no they aren't okay
215. 8:31they not all of them are going to work
216. 8:33and that's why we have to wait for
217. 8:34confirmation that's why we have to wait
218. 8:36to see if there's a reaction that's why
219. 8:37we wait to see on a smaller smaller time
220. 8:39frame if there's a break of structure
221. 8:41make sense
222. 8:43cool
223. 8:45um
224. 8:46I don't really I'm trying to think what
225. 8:49what else we have I mean today's
226. 8:50homework you are going to be going on
227. 8:53whatever pair you choose right whatever
228. 8:54one pair that you're going to be trading
229. 8:56on
230. 8:57um and you are going to be
231. 8:59you are going to be
232. 9:01um identifying 10 fair value gaps within
233. 9:04the market and then you know creating
234. 9:07kind of like a
235. 9:09hypothetical way that you would trade it
236. 9:11right so like this we see that breaker
237. 9:13structure the downside we know that
238. 9:15price is falling okay yeah we have this
239. 9:18fair value Gap within here
240. 9:20right we have this for Valley Gap we see
241. 9:22price fill close bearish right here okay
242. 9:24perfect now we can enter a stop above
243. 9:26the previous High Target previous lows
244. 9:28right simple as that but again we're not
245. 9:31even we're not even at the point of of
246. 9:33being able to execute yeah we're still
247. 9:36putting the pieces together so that's
248. 9:37really all
249. 9:39fair value gaps are and it's it's a
250. 9:41three candle pattern the first candle
251. 9:44okay the first candles Wicks do not
252. 9:47match or do not fill the second candle's
253. 9:51body and the first and third candles
254. 9:54Wicks do not fill
255. 9:57the second candle's body so let's say
256. 9:59this is the body
257. 10:01if we have
258. 10:04Wick from this candle and then Wick from
259. 10:07this candle let's just say these are
260. 10:09candles
261. 10:16okay there we go boom this is not a fair
262. 10:19value app why because price already came
263. 10:21within here
264. 10:22filled the liquidity void
265. 10:24right there's nothing else to do in here
266. 10:26and and these Wicks show hindering
267. 10:28orders these these Wicks show resting
268. 10:30orders
269. 10:31pretty much proving that
270. 10:34um you know this pretty much proving
271. 10:36that okay there's there's no lack of
272. 10:38liquidity here it's been filled so
273. 10:40that's something that I want you guys to
274. 10:42do as well be able to know where there's
275. 10:44no fair value Gap is this a fair value
276. 10:46Gap [ __ ] no why because we're looking
277. 10:49for a bullish for Value Gap we take it
278. 10:51from the top Wick the top Wick of the
279. 10:54first candle okay to the bottom Wick of
280. 10:58the
281. 10:59to the bottom Wick of the third candle
282. 11:00in terms of a bullish order blog look
283. 11:02this oh sorry bullish um fair value yep
284. 11:04look this is this is not a fair value
285. 11:06Gap because we took it from
286. 11:08this the high of this Wick down to the
287. 11:11low of this week and nope is not gonna
288. 11:13work definitely not gonna work okay so
289. 11:16with that being said I understand and
290. 11:19know the difference between ones that
291. 11:20are not real you know you should easily
292. 11:22be able to identify these right we just
293. 11:24showed it perfectly remember it's a
294. 11:26three candles pattern we're using the
295. 11:28Wicks of the first candle along with the
296. 11:30third candle and we're using the second
297. 11:32candle to pretty much show
298. 11:35the imbalance right we have this candle
299. 11:38this is a perfect example this candle
300. 11:41this candle is candle number one we take
301. 11:42it from the bottom Wick in terms of a
302. 11:45bearish fair value Gap we take it from
303. 11:47the bottom Wick right which is right
304. 11:48here down to the third candle's top Wick
305. 11:51which is right here okay the second
306. 11:53candle is the imbalance okay perfect we
307. 11:55see price rally up on in there
308. 12:01scale down to the lower time frame boom
309. 12:04you see breaking structure Young Money
310. 12:05militia
311. 12:06that's how we can execute okay so with
312. 12:09that being said get your homework done
313. 12:11make sure you identify these and then
314. 12:13also be able to identify the ones that
315. 12:15are not even real so you can actually
316. 12:18get comfortable with understanding you
317. 12:19know which ones are right and which ones
318. 12:21are wrong oh man yeah that's pretty much
319. 12:24it um I'll see you guys tomorrow for a
320. 12:25nice little psychology Zoom
321. 12:28um I'm really excited for it peace out
322. 12:31um also hopefully I can get some good
323. 12:32night's sleep before the next video that
324. 12:35goes up tomorrow okay