How To Know Which Fair Value Gaps Will Work

what's up guys it is Justin back with a

new video today we're going to be going

over fair value gaps which ones to trade

which ones not to trade a lot of new

traders that I see coming into the space

and they learn fair value gaps they end

up just taking every single fair value

Gap they see that is not the case you

will not find success with that there's

going to be fair like apps that work

there's gonna be something that don't

work how do we figure out which ones

work which ones don't work which ones to

trade which one's not to trade today

we're going to be going over that

because a lot of the times you need some

sort of structural context structural

bias and if you don't have that a lot of

the times you're not going to get a fair

value Gap that's going to work for you

so first thing I want to jump into is

understanding discount versus premium

now let's say we have a chart here I'm

going to draw in

we have a low put in and then a big move

up

a pullback

and then a move higher right so let's

say we're pulling back here and we have

two fair value gaps we have maybe one

right here and then we have one right

here as well right so if I was to take

some sort of long entry why would I not

take this very value yeah right well the

reason now sometimes this is some some

cases it will work but most of the time

I would want to see uh us come down to

this level first if I'm going to take

some sort of long entry and the reason

is is if I draw out the range I go to

the high

to the low

of this range

this is now split up in what we call the

top is premium the bottom being discount

if we're long biased so I would want to

suggest retrace to Discount fair value

Gap and then see a move to the upside a

lot of the times when we pull back

people are going to take that initial

fair value Gap and then it'll get ran

through right because most of the time

we need to retrace the discount and then

bounce and a lot of the times I use

discount and premium on bigger ranges to

find where the Market's most likely

going to retrace next

so this is number one understanding fair

value gaps if we want to take a fair

value Gap in an entry we want to make

sure it's in discount of whatever the

range is of that initial leg move right

now the next thing we want to talk about

is also understanding buy side sell side

you know if we're if we just swept sell

side liquidity most of the time we want

to see a bullish fair value Gap right so

for example

why why would this bearish fair value

Gap not work right why why would this

not work why do we not come up here

why do we not come up here and then see

lower why is that well because we've

already swept some form of cell

liquidity if we look to the left here we

have this prominent low

so since we swept this sell side level

we do not want to look for a short entry

because if we sweep some sort of level

most of the time all of these fair value

gaps that are created on this side right

here are going to be invalid and

something we do not want to pay

attention to because now the trend is

shift we've now taken out all of these

cell Stops Here and Now want to move

back to take out that initial that next

buy side level which is at this time

it's this here move so

we can see here we come up you have

breakup structure

and then a pullback into this five

minute fair value Gap notice if I go

down to the one minute though actually

well two minute

maybe three minute we'll see if we get

multiple here we go

we get two fair value gaps here we get

one right here

and we get this one right here

why should I not take this first fair

value Gap well let me draw in my fib

it's not in discount I want to see us go

below discount and then look to see some

sort of long entry so if I'm looking at

the five minute chart here we have one

five minute fair value Gap right we have

one five minute fair value Gap that we

end up holding and bouncing off of but

if I was to look for an entry and going

down to the one minute I would wait to

see Market come down below this 50 level

and then look to take some sort of long

to Target that recent buy side level

right now again same reason if I'm

zoomed in here but I have no structural

context why would I not short this fair

value Gap you have to zoom out right

because if I'm zoomed in right here I'm

gonna be like okay well we swept this

High we're now pulling back you know why

this looks like a good short you know

we've pulled back to Discount C you know

why would this not be a short to go down

because you have to look and zoom out on

a bigger time frame we've swept this

South Side level so the next draw in

liquidity is going to be whatever that

recent high is especially when we have

big displacement back up right so you

always have to focus on every you know

different time frame if you're too

zoomed in you're gonna get a you know a

false bias so always looking at

different time frames to overall give

you a better bias that's why I'm very

picky with what I trade because I want

an A plus setup something that all of

the time frames I look at are going to

align with whatever setup I'm looking

for right so for this example you can

see we sweep sell side that's why we

wouldn't take any of these bearish for

your value gaps once we sweep sell side

we're looking to take some sort of long

we are long bias right now if the market

shows that it wants to go lower then we

can maybe look for a short but this is a

clear liquidity sweep to us notice there

is not a single candle close below this

level

there's no follow through we start

showing more strength right when we take

this level up we're not having a move

down we Wick down move back up Wick down

move back up and then we have this big

move back up to right to the upside

right so this is showing that we do not

want to head lower we've swept the low

and the only thing that we're focusing

on Fair Valley Gap wise is going to be

any bullish fair value Gap right

so now let's look at some more examples

let's look more in the charts and I'll

tell you why or why not we shouldn't

take some for Value so let's keep

looking back

right now again a lot of the people

would maybe look

here

and say okay why would I not long this

now you could long this again if I'm

going to Long anything here it has to be

in discount

right so we've now reached discount

notice we have all this for Value Gap up

here for like up right here but this is

the fair value Gap that's actually

holding it's because this is the one

that's in discount right we wouldn't

take we wouldn't take this one we

wouldn't take

this one we're gonna take whatever is in

discount right but the reason why this

doesn't work is because if we if this

was a valid long if this was a valid

long which look right we have a fair

value up here then we should take

whatever the reason high is but we never

do why is that we come back and actually

make a new low well because we have to

zoom out if we zoom out on a bigger time

frame

we can see

that we've swept this one hour High

if we've swept this one hour High

then what would this be considered this

would be now considered Market structure

shift so we're having a bearish model on

a bigger time frame so we have to take

that into account if we're bullish on a

five minute chart does that really

matter which one do you think is going

to show more strength whatever the

overall bigger bias is I know Market

wants to now go lower we've swept buy

side we failed to reach higher we failed

to go higher here now even though we

swap this internal level it doesn't

matter I know we're going to go lower

because not only

do we have a fair value Gap all these

fair value Gap in imbalances down here

but again drawing in our FIB if I go to

a bigger time frame here like the four

hour I want to see this entire range so

now it's just like we're looking at the

five minute again but on a four hour

looking at this entire range here moved

up swept by side displacement down where

can I expect us to go

back to Discount draw in my FIB High to

the low of the range boom I know

Market's going to sell off to discount

so again would I long this fair value

Gap

or what I long this fair value Gap

obviously the lower one because it's in

discount I go from the high

go from the low you can see we come down

hit discount and then immediately get

bought back up

notice we also have equal highs right

here equal highs acting as buy side this

now becomes the draw on liquidity if we

want to go higher equal highs always are

going to get hunted right so again two

fairly gaps here which one is going to

be valid whichever one's in discount

right so using different structural

biases in different time frames is

what's important because again like we

said before if I'm by if I'm bullish on

a five minute right we can say okay well

we swept liquidity here and then we're

having big displacement and then a fair

value Gap I'm gonna long this no I would

not long this because on a bigger time

frame I'm still very very bearish until

we get to Discount then I can get long

right until we go to Discount I'm still

going to be bearish right so similar

thing here

a lot of the times people do not want to

wait for Quality setups they just want

to you know put risk on the table just

to put risk on the table a lot of the

times I won't take specific trades even

if it looks good I won't take it because

there's something missing out of the

setup that's going to make it a lower

quality right for example

we have a high right here never ended up

getting swept right never ended up

getting swept big move down if I was

focused on a fair value Gap it would be

this right a bearish fair value Gap we

can see we come up reject it and then

come back and then sweep these equal

lows down here right

now I would not short this because we

never ended up taking out buy side

little things like that if we don't take

buy side I have no interest in taking

shorts because I know the draw is

probably still going to be that previous

High

so we end up coming down sweeping sell

side right still no trades for me

because we're just inside this range I'm

only going to take something if we sweep

some sort of level we come down

sweep internal sell side and then get

that displacement back up to take out

all of these equal highs here right we

have relative equal highs this is a

clear draw on liquidity we have all of

these stacked highs acting as buy side

and generated liquidity right we come

down sweep that low big move to the

uptight to sweep those highs right

so even looking back a little bit more

let's look at another example

again just looking at the charts here

we'll see

it's actually let's go down to a let's

go down to the one minute and then look

for some some things here as well

want to go to real Market hours and not

after hours data

and Es has been having really bad action

recently so

all right

we'll look at some of this stuff so just

looking at this chart right here right

if I'm long biased which I am right we

know the overall draw is higher

we're in a big move to the upside

and I want to take some sort of trade

right I can see us retracing back down

first thing I want to do is draw in

whatever that recent high is

what I'm gonna do is I'm going to zoom

out to a five minute

if I can find where that was on the

chart it sure was right there

and I want to see us go to some sort of

discount level right

now

zooming back in

I can see we have a lot of fair value

gaps here right

we have one right here

we have one right here again this is a

three minute time frame if I zoom in or

zoom out there's going to be different

number of ones so that's something that

you have to figure out right if there's

no clear setup don't take it it's that

simple people always ask me how do I

know which one to take how do I know

this is if it's not clear don't take it

because it's probably a less probable

setup right it's not that hard but if

there was going to be a play here you

could say okay wait for the initial

bounce right wait for it which means if

we have some sort of fair value up here

look for an internal break structure

meaning we probably have a five minute

fair value Gap right here I mean we have

this one minute we continue to hold this

once we do

we get internal break of structure with

big displacement

then we get a fair value notice if

there's only one fair value Gap if

there's only one fair value Gap a lot of

the time

we do not need to retrace the discount

if there's one fair value Gap a lot of

the time we don't need to but I think we

still do in this case notice draw in the

high to the low

retrace the discount

gets bought back up targeting that buy

side level

right

any sort of fair value you can look at a

lot of the times you will always see the

retrace to Discount before going higher

or going lower

you're gonna stay on the one minute just

keep looking around

now there will be times where you don't

need to in the times that I do take a

trade with a fair value Gap non-discount

is when I have a clear bias and I'm

confident in the trade whether we have

equal highs I'm confident on the drawing

liquidity

sometimes I might enter in the first for

leg up and then maybe average down or

I'll enter in half my position in the

first River I got then wait for another

one and then average down when I

actually you know get the better fill

and go to the discount but a lot of the

times I won't take the trade unless I

get that specific entry that I want

right

so for another example

let's go back to a five minute here

now this high was never taken

would I look to take some sort of short

here yet no I wouldn't

we have all of these highs getting put

in right

we have a low here

and a high here until one of these

levels gets taken I'm not going to take

a short now we do get something here

we get a sweep move up

Market structure shift

and this fair value Gap

again looking at discount

I got from the high go to the low

we retrace to Discount under this level

hold this for Value up you would take a

long in this right under discount and

then notice the next draw on liquidity

is going to be whatever that high is

created we come up sweep this high

same thing down here

if I zoom in

oh I think I can't go that far back on

the on the data

here let's take a look at NQ now

now took another example just any any

sort of point in time

drawing in my lows to my highs

actually we did we did sweep this lower

here

right so

if we're looking at this market right

here

oh also this is important too we have

clear buy side above us

if I'm looking at this chart right here

and we swept this low right all of this

is so important this is all context

bigger time frame we've swept sell side

starting to bounce back up notice just

continuing to draw what I take any short

here

all of these three value gaps why would

I not short this

we're pulling back to Discount you know

look

we've retraced a discount why would I

not short this

because we've already swept South Side

so what's the next draw well if we look

at the action we're continuing to move

up

drawing liquidity is going to become

whatever that reason high is so I'm not

looking to take any sort of short

position

now

we sell off fake move to the downside

all of those people that are long are

getting stopped out and thinking they

need to go short now

stop him out just to then go back take

out those highs so if I'm looking to

take any sort of long

I would Target buy side

and look for some sort of favorite game

discount we gotta sweep here

break of structure

we put in a high

go to the high to the low

draw in the fair value Gap and discount

we go back under 50 hit fair value Gap

then bounce to the upside right

liquidity sweep Market structure shift

pull back to Discount the draw and

liquidity again not only is the Drone

liquidity higher on this time frame but

if we zoom out it's also on a bigger

time frame we swept this overall

external low starting to move up drawing

liquidity becomes whatever that previous

high is that was created

so if we're looking to take a long we

get internal Market structure shift pull

back to the discounted fair value Gap

right why would I not take this

I wouldn't take this

because it's not a discount right

you have to zoom out because if I'm too

zoomed in I'm gonna look at this and be

like okay wow this is actually in

discount no it's not

zoom out right bigger time frame wise

this is the move this is the overall leg

that we're looking at

now

once we sweep this high

am I looking to take any long no why

would I not long this because buy side's

now been swept this High has now been

taken why would I not long this forever

I got because buy side has been taken I

am only looking to take a short position

now now

all I need what do I need for a short

position break a structure fair value

Gap we've swept external we get a break

of structure

and we get a fair value Gap

now I do not need to see

a move to discount if we only have one

for Value Gap notice this is the only

fair value Gap we have if I'm going to

take a short position it's going to be

right here stop at the next High

targeting recent low

we have external liquidity being swept

Market structure shift displacement

whatever that fair value Gap is Created

from that break of structure is what it

was what I'm going to short right notice

this is not a discount now what I would

draw in is I'm going to draw in whatever

that internal high is so I'm doing very

I'm not going to take this entire leg

because there's no really low that put

in so I'm taking this to this we still

never reach discount I'm fine with that

because on a small time frame like the

one minute if I am looking for a

scalping entry I do not need to see

a pull back to Discount unless we have

more structure if this is the structure

we're looking at notice there's no fair

value Gap this fair value Gap up here

has already gotten has already gotten

filled so I don't really care about this

I care about whatever is Created from

that breaker structure right this move

to the downside

is our break of structure and it creates

a fairly value Gap notice we have

displacement here this candle right here

is not our break a structure candle

because there's no displacement this is

when we actually break it right we get a

big move to the downside so this is the

fair value Gap we're now watching to

enter some sort of short position right

and then targeting sells out liquidity

in this case it's that whatever that

recent low is

and we sell off so now once we reach

this low what am I looking at well if we

start to show hesitation and then get a

big move up I'm not looking to short

anything anymore

I'm looking to just watch and see more

structures hard to form right

notice

create equal highs we have equal highs

up here what do equal highs do they act

as generated liquidity we know equal

Highs are going to get Hunted

Market starts to chop big push down

sweeps the internal low

big move back up what am I looking for

I'm looking for these equal highs to get

hunted big move back up

pull back to fair value Gap notice if I

draw in the FIB here High to the low

we retrace back to Discount in the fair

value Gap bounce up to hunt those equal

highs okay now that these equal Highs

are hunted am I bearish or am I long

well on a bigger time frame as well

we've also swept this so I'm going to be

short biased and I'm just gonna wait

right wait for more action to start to

form now

now that this is formed I'm just letting

the market do its thing I see we got a

big push up start to Trend start to

Trend and then that's where we're at

right now in time

we'll continue to look back here on NQ

get some more action

right

once we come up sweep this high

am I looking to take any long no I'm not

looking to take any long until we reach

discount of whatever this range is

so move down

pull back to fair value Gap

this bearish why am I not really caring

about

why am I not caring about this why am I

not caring about this all of these fair

value gaps here because we've already

swept by side I don't want to take any

sort of long now it might work

but it's low probability we're building

good habits it might work sometimes but

you have to realize if you're doing

something wrong or you're doing

something right because I don't want you

to be doing something wrong and then it

works out for you and you're like wow

that worked I'm gonna keep doing it

because all you're going to do is build

bad habits and then you're gonna get

[ __ ] hit like a semi truck

so

you need to be practicing good habits if

we sweep by side I'm not looking to take

any sort of long unless

on a bigger time frame we have a bigger

structure bias meaning buy side on a

bigger time frame is still higher

which if we're looking at this time

frame we've swept this external High I

do not care if we've swept this High we

can break out but until I see some

structural bias I'm going to be sure

biased until we start seeing a bigger

push up right

now again this is a lower time frame

that we're looking at so let's go to a

higher let's go to the fifth five minute

and just see if we can see anything

right

zooming in

let's go to some more

you know data here

right we have this big move up here two

fair value gaps one right here

one right here which one is going to be

valid in the one that I want to pay

attention to

whichever is a discount

go from the high

to the low

right of this

come back to discount

Bounce from there

and then see lower

looking at this move here

come up sweep equal highs

we're in a downtrend

we have a fair value Gap here

sell side liquidity here

notice where are we pulling back into

go to the height of the low

pull back to discount

right inside that fair value Gap aligns

perfectly and most of the time you'll

see that happen if you get a proper

setup a lot of the times discount will

align with whatever that fair value Gap

entry should be you can see pull back to

discount

sells off to sell side

now if I'm looking at this low actually

we'll do this

come up to take this high am I long Vice

after external buy side's taken no

so do I care about this a lot of people

are like why why are you not scared

about this for like yeah why are you not

scared about this free value Gap because

looking at a bigger time frame

I have no interest to Long anything

right now right if we swept this

external buy side I have no interest

along because what's going to happen if

we take this take this by side and then

we get big displacement down like this

what becomes the next round liquidity

whatever that next low is which is this

so we have buy side at the High

and I do not care to Long any of these

for Valley gaps because we've already

swept by side

I do not care

right so if I'm if I'm looking at

anything here I'm looking at any bearish

fair value Gap that's going to be

targeting whatever the draw on liquidity

is so this come up sweep internal High

bearish fair value Gap because we have

confidence that the draw is going to be

lower on a bigger time frame so we're

overlapping models not only is let's say

I zoom out here in my 15 minute fair

value gap or my 15 minute bias is

bearish

right because looking at the 15 minute

we've set this High I'm bearish now that

we're having big displays back down

and I want to see I'll pull back to

whatever that low is right so now that

but now that sell side has swept now

what's my bias I'm gonna be more long

biased but I'm also not going to be

super long biased because again zooming

out we have a big range here what I'm

gonna do is I'm gonna draw from the high

to the low of this range

look at that

just like that previous example again

going to a bigger time frame as well

but look at the four hour

a lot of the times

you will see us retrace to whatever

discounted prices of whatever the range

we have this range here pull back to

Discount and then we go see higher

a lot of times you'll get that exact

same example notice another one here

we'll see if this aligns

go to the high

go to the low

perfect

pull back to discount

instantly gets bought back up

but like discount instantly gets bought

back up notice we go under this range so

all of these for Value gaps up here I do

not care about right if we zoom out on a

bigger time frame like the four hour

we have one fair value Gap here if I'm

going to take any entry inside this fair

value Gap it needs to be under discount

right and we have an smt here and then

bounces back towards that buy side level

right

actually going back another example here

we get bought up

actually we already waited that we

already showed that actually

another one

buy side swept on a bigger time frame

am I long biased here if I'm looking at

the chart right here am I long biased

[ __ ] no buy side liquidity just got

swept what am I looking for looking for

whatever that recent low is what's the

recent low this right here

so what do I also know we're gonna go to

Discount of whatever this range is so I

look for internal break what I do drop

down to a lower time frame

okay I can see by side swept

am I caring about looking at any of

these for everybody gaps to long no I

have a bearish bias on a bigger time

frame so what am I looking for I'm

looking for some sort of short model on

a smaller time frame so now that I have

a bias on a bigger time frame I'm short

biased I'm looking for some sort of

short model to enter whether it be smt

forever yeah break a structure you know

liquidity sleep whatever it is right

on a bigger time frame

we sell back off

once we sweep this low now on a smaller

time frame

I'm going to be more bearish but I have

to keep in mind on a bigger time frame

we still have more room to the downside

right we still have more room to go to

discount so I'm also going to be

cautious taking any sort of long set up

here targeting the highs because really

we have there's no really room to go to

the high on a bigger time frame we're

still going to go lower so sometimes I

might take a long setup or I might take

a short setup with a you know a bullish

bias on a five minute or a 15 minute but

on the four hour it's a bearish bias so

what that means is I cannot let those

contracts run if I'm in long let's say

you know there's a fair value Gap right

here and I enter here I'm not going to

let it run all the way to this high

because we've already swept buy side on

a bigger time frame I know we're going

to most likely see lower first so I'm

not going to let contracts run what I'm

gonna do is I'm going to scale most of

it at 50 of the range a lot of the times

I'm going to take contracts off at the

previous high so I'll take half off here

and I'm gonna let the rest go to

whatever the range is so what I do is I

zoom out back to the one hour

we swept this High I'm in long I go from

the high to the low of this range

right because I know markets are going

to retrace to back to Discount right so

go to the high to the low that was

created and I know we retrace back to

Discount then see lower notice we never

close above it either we reject this

discount Point 50 percent

sell back off

let's look at some more examples

just going to keep looking

we come here sweep this buy side level

what am I looking for am I long bias

here no but am I long buys on a bigger

time frame

yes

we still have this external level

drawing in this entire range right High

to the low we've retraced a discount

drawn liquidity becomes that previous

High

but can I be short biased on a smaller

time frame absolutely but I have to keep

in mind long biased on a bigger time

frame

on the one hour we sweep this high

let's zoom in

15 minute chart

we get Breaker structure

what am I looking for

pull back to discount

notice there's no really pull back to

Discount here

what we come where we actually continue

to sell off

actually there might be a pullback to

Discount up here again if there was a

setup it would be like on a one minute

two minute in in this time up here but I

can't look look for that back but again

what's the next draw on liquidity if we

sweep this High whatever the low the

next low is the reason low that was

created is here

mark this Mark structure big

displacement back down

we sell off to the next sell side level

am I am I am I am I still bearish here

no I'm not I'm long biased now because

we've swept South Side now we still

could go down more we still have more

room to go we still have a low here

we still have a low down here but since

we've swept that previous low now I have

no interest in taking any shorts until

Market starts to form more structure

right same thing happens here

waiting for this buy side level never

get swept I don't really care I'm just

gonna wait

ing for some sort of South Side we

create a low

sell side gets swept what do I think the

draw is

whatever the reason high is internal get

swept

okay

pull back

again bigger time frame we still have

that bigger structural buy so right now

we're just in this trend

we have lower high lower high break that

low sweep it then see liquidity right A

lot of the times is what we want to see

if we have a bearish trend like this and

we want to take some sort of short entry

I want to wait to see a pullback to

sweep some sort of level notice we also

have some fair value gaps over here

acting as resistance once we come up we

sweep this what's the next draw we have

big displacement back down next draw is

going to be whatever the next low is so

outside liquidity right here

sweep the low again smaller time frame

let me see if I can zoom in I don't know

if I can look at the five minute from

that from that long ago there we go

notice

two fair value gaps here actually well

there's technically I want a can I zoom

in more maybe three minutes two minutes

again I'd have to see lower time frame

to get a better judgment

did I miss it

I always think it's still far back

there we go

where is that that's not it is a

is it I think this is it so buy side

swept

Market structure shift here big

displacement where am I looking to short

right

we have a notice by side level swept

displacement back to downside where am I

looking to short somewhere in discount

go from the recent High

to the low also if I draw in from the

high and the low retrace the discount

we have a fair value Gap right here

this is where I short where do I put my

stop either the high depending on your

risk or the recent Wick highs

I put a short in shortened discount stop

at the high what's my target

well my first Target is taking off some

contract at whatever the recent low was

we have a recent low here I'm taking at

least a quarter off here

what's my next Target South Side

liquidity also any unfilled imbalances

so I'd take off maybe one right here

take off maybe one right here but most

of the time I want to see it go to

whatever that sell side level is

and then there you go sell side levels

end up sweeping right so for your value

gaps you need context

I want to see a breaker structure

liquidity sweep then that for Value Gap

and discount a lot of the times if we're

looking at the chart right here with no

structural context

a lot of people are going to end up like

longing this right why why do I not

cared along this even though it's in

discount

right

if I'm looking at this trade and I have

a favorite here look if I draw in my Fib

from the height of the low it's in

discount why would I not long this

overall bias is still bearish we've

swept that external High we want to see

lower

click another example

uh I think we've already went over that

one

again bigger time frame wise right here

though this is a bigger model big 15

minute High swept what would be my

breaker structure

break a structure big displacement

what am I looking for pull back to

Discount High to the low

we get that tapped in right here

big free value Gap

shortened discount stop at the High

your first price Target

would start scaling it along the way

right

and then what's the draw sell side

this fake out move never ends up getting

stopped out at the High

big move back down again if I'm bearish

what am I looking for retrace the

discount this shows me that we're still

bearish

have another retrace

back to discount

fair value Gap

rejects C is lower what's the draw on

liquidity whatever that previous low is

sell side then swept here

am I looking to Long anything here no

but I'm still bearish because on a

bigger time frame

we've swept that external level big

external level so what's the overall

draw on a bigger time frame well these

lows but notice yes ends up sweeping

these lows because so we're actually

forming an smt here because if we're

looking at NQ that means yes swept that

sell side level so a lot of times one or

the other will sweep it but the other

one doesn't that's why we form smts and

that's why smps are so important

let's look at some more examples

go back to a five minute

let's play a game I'm just gonna go

randomly I'm gonna tell would you long

this or would you short this

actually let's do this 15 minute we'll

do this replay

let's go here

let's take a good look at the chart here

what am I going to draw in

notice all of these highs here what does

this become

what do all of these highs here become

all of this becomes low resistance

liquidity which means if any of these

get taken we're going to most likely

take all of them so the only High I care

about here is that external High that

being my buy side level

looking at the chart here what am I most

of the time I'm gonna be I'm gonna be

pretty bullish because I want to see

that high being taken we've had a big

move back up or big move down big move

back up so I'm going to zoom into this

range now okay what is the high and low

of this range if I have to wake up today

and I'm going to be bearish or bullish

what am I going to be well

draw on my buy side

draw in this range and we've reached

discount notice all of these fair value

gaps and imbalances here

were a discount of this entire range

here I'm bullish I still think the draw

is higher now so what am I looking for

internal sweep internal breaker

structure targeting buy side and then

external buy side so if I zoom back out

to a 30 minute

we can see we're still holding this 30

minute for Value Gap we've retraced to

Discount of this range

holding that fair value Gap look how

strong one two three four five six we

cannot break this free value Gap what is

the drawing liquidity just by looking at

this the drawing liquidity to me now

that we've reached a discount draws

higher on a bigger time frame smaller

time frame draws is going to be this

reason high now so what I would what

would I look for for an actual trade

look for some sort of internal sweep

break a structure internal Suite being

if we come down maybe sweep a low and

then come back bounce up look for some

sort of internal break I haven't seen

anything yet we'll see if we get

anything

big move up

some kind of get some kind of break here

no really A Plus setup

maybe could see us retrace back to here

and then go to buy side

but right now I just have confidence in

the draw

if I was to take a long I wouldn't

really take anything yet

draws hit now what

now I'm bearish on a smaller time frame

on this time frame I'm bearish but again

zooming out

draw liquidity is still higher all of

these highs become low resistance

liquidity I have to keep that in mind

I have to keep that in mind

so if I'm looking to take a short here

I'm not going to let it run all the way

down here I would have to do whatever

the recent low was

let's see what happens a lot of the

times let's go to the five minute

actually Zoom back out maybe

break a structure

fair value Gap

pull back to discount

now why is this a lower probable setup

because draw on a bigger time frame is

higher right now could this still work

out yeah

but it's going to be lower probable

we'll see if it works out though this is

whatever our setup would be stop would

be at the high or stop would be I

wouldn't even really risk that much

first price Target again would be those

equal lows that we created second price

Target would be any unfilled balances

you could scale at any sort of low right

it depends on your risk parameter I

would probably scale out here scale out

some here and then use the runner at

whatever the recent low was but again I

know the draw liquidity is higher

so we'll see what happens

end up getting stopped drawing

liquidities higher lower probable setup

you have to keep that in mind why would

it that's exactly why I wouldn't take

the setup

if every sort of time frame has to align

if you want to only trade good setups if

you really want to be profitable you

have to have the discipline to only

trade good setups and if you don't

recognize that the overall draw

liquidity is higher again all of this

becomes low resistance liquidity run

right all of these Highs are super close

so if we take one we're gonna take all

of them so I have to I have to notice

that

we end up coming up

drawing liquidity still higher right if

I was to take a long now what would I

look for retrace the discount of

whatever this range is

idle low would want to see discount

never met

there we go draw taken what happens

after instant move back down

now what would I look for there we go

internal break

zooming back out to a bigger time frame

now because this is now a liquidity

sweep on a bigger time frame right now

what would this be this would be now be

Market structure shift on a bigger time

frame right what would I look for

retrace back to Discount zoom into the

15 minute

we have two fair value gaps here

this one

and this one

what do I care about whichever one's in

discount

hi hello

don't care about this this is what I

want to watch

how Market comes up

Taps into that fair value yeah perfectly

what do we expect to see happen now

zooming back out to the one hour

external swept

more constructure shift pull back to

discounted for your value Gap

what would I want to see now I'd want to

see lower

continue to hold it

notice as well no internal liquidity

swept though

and we come back and see that recent low

being swept

so again lining everything so we might

get chop here but again on a bigger time

frame if I'm going into today

if I'm going in it let's let's say this

is Right today if I'm going into today

I'm going to be short biased what would

I want to see well look at all of these

highs here

this might become lower resistance

liquidity run meaning if we take one

where you're just gonna Skyrocket and

take all of them so if I'm bearish on an

overall bigger time frame I'd want to

see a push-up to sweep this high and

then a move back down

okay come up sweep the high

bearish on a bigger time frame I would

have to wait again Market hasn't told me

it wants to go lower yet this Market

still has not told me it wants to go

lower yet

we sweep internal

what am I looking for Market structure

shift on a bigger time frame

now we get displacement now I could say

okay we could possibly go lower but what

do I know we're probably gonna go to

probably gonna go to discount on the

survey I got

of this entire range right we haven't

reached discount yet so I know we still

have lower to go again this is a one

hour so most of the time I'm zoomed in

at this point I'm zooming in on a 15

minute five minute whatever it is right

so draw on that range

I know we could probably go to discount

s never met maybe we'll see never met

internal sell side swept but notice

we've now reached a discount on a bigger

time frame

High to the low we've now touched

discount so my bearish are bullish

either way could go either way on a

bigger time frame

we've swept external buy side but we've

had big move to the upside so maybe we

could see higher and we've reached now

discount of this entire range

so we definitely could possibly see

higher now what would I look for what's

going to show me that we want to see

higher break a structure so this would

be internal

this would now be break a structure I'd

want to see this with big displacement

if we want to go higher until then there

we go

we had big move Market structure shift

bigger time frame we've retraced back to

discount if I'm looking at a daily I

zoom out

we're holding a daily fair value Gap

zooming back down

draw in my FIB we've reached a discount

right I knew we were going to retrace

the discount now that we've reached

discount I then zoom in

look for internal breaker structure we

can see internal sweep here

internal breaker structure here again

big displacement I don't want to see a

little poke above and then move back

down I want to see this big move through

that level now what I want to see a

pullback to discount

you're on the high to low again whatever

that high gets put in

we'll see if this is the high that gets

put in

again want to see us retrace the

discount

after hour session again gonna be choppy

slow action

but another high

still would want to see us move to

discount

there we go

we've now moved the discount

so now what do I do

well I noticed we have a fair value

gapper here

so looking at this chart am I long or

short biased

I'm gonna be more long bias than I am

sure biased but I still could maybe see

this so what would I look for well

bigger time frame wise

we've retraced the discount

big big Market structure shift slowly

retracing back into this 15 minute fair

value Gap we've now retraced to Discount

right

draw on liquidity if we end up getting a

bounce here internal would become

whatever the previous high is so now

what do I look for I zoom in

zoom into the five minute wanna see

internal breaker structure again I'm

still haven't taken a play yet it's not

like I just jumping along right when

this free value Gap is that's not it I

need every sort of thing to align so now

I need to perfect my entry by going down

looking for some sort of 15 minute

notice we continue to sell off no entry

I'd need some sort of break of structure

I would look for this High being swept

it never got broken so there's no entry

for me

still wouldn't take any trade yet

now we come down don't sweep this low

the big displacement back up since we

came down so close to this low doesn't

give me confidence Enough To Take Along

here I would still wait

still would wait

buy size now swept

we get Market structure shift

zooming in do we pull back the discount

now you could mark this in two of which

ways you could do this way which we

never actually do go to discount or you

could go from whatever the high is and a

lot of the times I like to do if there's

an order block that's the high I'll put

in so we can see we have an order block

here right move down move up I'm gonna

do whatever that high is created

high low pull back to Discount continue

to sell off right again after taking

external buy side dis displacement back

down Market structure shift pull back to

fair value Gap sells off

would I be looking to take it any long

here

no do I want to draw this in because we

can bounce yes this is still important

we could still bounce off this but am I

looking to take anything not unless I

don't get any smaller time frame

structure right because on a 15 minute

we're still technically bearish another

thing I want to draw in have we reached

discount on the Range no we haven't

reached discount of the range so I still

think we have more lower to go

so zooming back in oh I can't go down to

the one minute camera oh I think I

[ __ ] it up

better go back to the five minute

was this where it was

not sure to be honest

I think this is where it was yeah

so this fair value is important

we've now retraced the discount rate

this is where we put in a discount

now what I would look for

well here this is this is a news move so

we don't really want to we don't really

care about that

again let's just keep looking for more

examples

come down here big move back up do we

retrace the discount nope actually yeah

we do this is your along here

notice all these fair value gaps here

boom boom

boom which one do you choose to take

along in whichever one's in discount

right

touch it perfectly pull back touched it

perfectly

automatic bounce up to the upside

external

okay we already talked about this one

uh

let's go to like gold or something

something random

literally look at any chart we'll do

actually we'll do

let's go to Gold futures

15 minute

actually let's go to uh

wait what's the [ __ ]

there we go

looking at the same thing right what

free backups do we take

well looking at this point in time

what's the draw on liquidity this High

look how close we are to it if I'm going

to take any sort of long position here I

would have to see a discount first

I'd have to see us come down here first

and then get a bounce and then look to

Target by side I don't want to enter up

here the risk is skewed there's no

reason for me to enter up here because

my risk is awful

keep looking we sweep by side once we

sweep this high am I looking to buy no

I'm looking a short towards whatever

that recent low is right

let me zoom in

let's see if we get any sort of internal

five minute

break a structure up here on a lower

time frame

next draw becomes this recent low

gets met

right here I'm bullish here

big move up

we have all of these highs being swept

big displacement what am I looking for

retrace the discount

High to the low

pull back to Discount then bounce

towards the high

go back to the 50 minute

just keep looking

all what is all of these lows when you

look at all of this right here

what is this what is this what is what

do you what does this become

all of these lows here

all of this becomes low resistance

liquidity

which means any if we come back down to

this area right we have a big move up if

we come back down all of this is going

to be swept all of this is going to be

swept which means every single low here

is going to be broken in one move right

so what do I do I draw on whatever that

external low is because that's going to

be the real hunt

let's see what happened

when we came down did we wipe all of

them or did we just sweep on

looking over to the right

we sweep all of these lows because all

of this becomes low resistance liquidity

a lot of the time you can draw it if you

just draw a little trend line like this

all of this becomes low resistance

liquidity which means if we take one

we're gonna take all

that's why I don't care if we take this

I'm not looking along because all of

these lows are super close so I need to

see external low being swept first

continue in the look

discount of this range

move to Discount displacement back up

buy side met here

what am I looking at now

possibly see lower notice we never get a

move back inside this range we move back

just a little bit right not a lot and

then we bounce back up

what is a draw if we can if we can't see

lower draw is going to be whatever that

previous high is

notice

big move up where do we retrace back to

before going higher retrace back to

Discount then go towards whatever that

draw is

15 minute swept

I swept big displacement back down

what's the Drone liquidity whatever the

low is

South Side

swept here

am I looking too long anything now

or am I looking to short anything now

I'm looking to see some sort of internal

break

so

once we sweep this am I looking along

this fair value Gap here

no I why would I not long this because

buy side's already been swept

once we come down sweep sell side am I

looking to Shorter along

I'm looking to most likely long but

unless I don't get a long setup I'm

gonna be patient

notice we just continue to slowly chop

off but there's no setup here for us

just continuing to chop continuing to

sell off continuing to sell off what

would I want to see

internal sweep big displacement

notice internal sweep

big displacement

now what well on a bigger time frame

this is break a structure

let's zoom out

this is now break a structure on a

bigger time frame

so now what what can I expect pull back

the discount

four hour fair value Gap here

pull back the discount

under discount never sweep this low

gets bought right back up to buy side

what can I expect here now

discount of whatever this range is right

zooming way out now daily time frame

what's the draw on liquidity well we

swept we haven't swept this we're

actually forming equal highs if I want

to take a long or if I want to be more

long biased what would I need to see

discount of this range first

notice we've reached discount here we

have this past fair value Gap here as

well showing support in my long bias or

my short biased most likely going to be

long biased here long bias until

we reached this by side level now if we

reach this buy side level I'm going to

be short biased on a smaller time frame

because on a bigger time frame we've

reached discount we're holding this for

Value Gap and we have equal highs being

the draw on liquidity is higher right

but on a smaller time frame

once we sweep this 15 minute we can now

see lower potentially taking out

whatever that reason's low is which is

this so we could see one of two things

either we get a big move up going

towards whatever that buy side level is

but once we sweep this one hour high I

would be more short biased in a smaller

time frame looking to see back lower

right

so

I hope this video sort of helped you

guys again a lot of this video is just

me diving into the charts just looking

at a bunch of random stuff and telling

you you know what you need to be

focusing on what you shouldn't be

focusing on a lot of the fair value gaps

that you need to focus on need to have

some sort of context with premium and

discount

if there isn't anything you need to

not take it if if there's no easy bias

for you to understand then don't don't

trade it's that simple

the more experience you gain the more

confident you'll get with playing fair

value gaps and having understanding

context with liquidity and stuff like

that but

if it's not clear then don't trade it

and just watch right gain experience

just watching it so hope this video

helped you guys in any way if you like

this content make sure to subscribe

leave a like and uh

I'll see you in the next one peace