Fair Value Gap Trading Strategy Using 4-Hour and Lower Timeframes

I've been trading for five years and I can honestly say that this strategy that I'm going

to give you is by far the absolute best. There's no daily buyers, there's no indicators, all you

need is the price action and in this video I'm going to show you how you become profitable

with this strategy and you get the full completely free PDF in the comments down below.

Okay for this strategy all we need is a fair value gap. I've made this as simple as possible so

what you're going to do is you're going to get onto the four hour chart or whatever market you

trade because this model works on every single market. You're going to get the four hour chart

up and then you're going to mark the most recent fair value gap right and for those who don't know

the fair value gap is simply the gap between this candlewick high and this candlewick low so simply

this right now the fair value gap itself does not make money right it's just a simple entry pattern

the logic is what makes you money right really important that it's the logic and the reason

we're doing this marking a fair value gap on the four hour chart is because this is our higher

time frame it's what the big banks use it's what smart money use and what we want to see really is

you want to get in the lower time frames and we want to see how does price react right does it

hit the four hour fair value gap and quickly shoot off if it does that's confirmation that we're

bullish and all we need is another fair value gap to enter on right and you can almost see this with

the wicks can you see how you wick into it and quickly shoot off but now that we've marked out

the most recent four hour fair value gap all we need to do now is get onto the lower time frame

so let's go to the lower time frames and see what we can see okay so here we are on the five minute

chart now this right here is the four hour fair value gap that we just discussed and can you see

this is really important here can you see how price drops into the four hour fair value gap

quickly shoots off and then gives you another retracement and then shoots off right to take

profit this is really really important you'll see this all the time and what's really going on here

is this is our four hour bullish fair value gap price drops in and then once it shoots off that

is price action that's smart money telling us that we are bullish right and all we need is a

simple retracement to enter on and then ride price up right so what we like to do or what i always

like to do is once price hits this four hour fair value gap right once it hits the four hour fair

value gap i like to wait for another fair value gap to form ideally on whatever time frame i'm

trading so if i'm trading the five minute chart what i want to see is i want to see some sort

of fair value gap form let's say here enter on it and ride price off right because when a fair

value gap forms on the lower time frames inside of a four hour fair value gap that is incredibly

high probability right super important i don't think i've ever said that you've got a four hour

fair value gap and you've got a lower time frame fair value gap that forms within the four hour

fair value gap and that is really high probability right and i'll show you what it actually looks

like because if you look very carefully there's actually no fair value gap here on the five

minute chart and gold does this all the time where it feels like there should be a fair value gap

right it feels like there should be one here but for whatever reason there isn't so you can do two

things you can either get the five minute up and go straight down to the one minute chart or what i

like to do is let's say i'm trading the five minute which when i'm scalping i always use the five

minute is we're going to go down to the four minute chart right i want to keep going down until we

find a fair value gap that forms around here and that fair value gap is going to be our entry so

if we get onto the four minute chart right we go to the four minute chart and zoom out can you see

right here we have our fair value gap right just what we want to see right so price

drops down wicks into the four hour fair value gap quickly shoots off high probability retracement

and then goes off to take profit right you'll see this over and over and over again with this

on every single asset right as long as you've got the four hour chart or as long as you've got the

four hour fair value gap any lower time frame that's below the four hour chart this exact setup

will work right so how do we make money from this what we care about is we want to see the first fair

value gap that forms on the lower time frame that's in the same direction as the four hour

chart now all that really means is the four hour fair value gap is bullish we just want to see

another fair value gap to form on our entry time frame because that tells us that is smart when he's

screaming at you that this is going to be a reversal right so this is how you actually trade

at reversal so you're going to mark out this fair value gap right there right like that

mark out this fair value gap now those of you who are a bit more eagle eye you'll see

these wicks here and they dip into the fair value gap and shoot off right really nice to see that

because that again is price action telling us that we're bullish i mean just look at this price

dips into the fair value gap and it quickly shoots off all the way over there but what i like to do

is i like to see the full price move and entering the retracement so the remaining fair value gap

right the remaining fair value gap is this here right so the wicks have filled in part of the

fair value gap but this is the remaining naked fair value gap right so to speak so this is the

fair value gap that's still remaining and just look at this right look how almost beautiful right

and it is beautiful isn't it look how the price or look how the wick comes right down it literally

fills in this fair value gap and then shoots right off so what we do for our entry right what

we do for our entry is we always we always mark out the four hour fair value gap first right we

always do that we get onto our entry time frame whatever time frame you like one minute five

minute even the 15 minute and then we wait the price hit the four hour fair value gap shoot off

only once it's shot off in the opposite direction right only once it's shot off in the four hour

fair value gap direction are we confident that this is a you know this is the real move all we

is a retracement on the fair value gap and right price off right so your entry is simply going to

be this fair value gap right here right this is your entry and your stop loss it has to be a minimum

at the low of the candlestick that forms the fair value gap so this candlestick here let me just

make this clear this candlestick here forms the fair value gap so the stop loss has to be at this

low here right which to be honest is a pretty small stop loss right nothing crazy and for your

take profit if you're scalping this is right you're scalping me personally i'm always gonna

target a three to one minimum right minimum because if you're scalping you may as well

i target three to one right so that's what i'm gonna do i'm gonna target at least a three to one

or you know for those of you who know about liquidity obvious liquidity pool here target

this liquidity that right for 5.6 risk to award right very easy very high probability setup this

strategy works in every single market as long as you use the 4-hour chart right you mark out the

4-hour fair value gap you can use any time frame that's below the 4-hour chart and you get the full

free pdf in the pin comments down below