How to Trade the Fractal Model: Sweeps and Fair Value Gaps

Hey, everyone. Happy Tuesday. I hope you guys are having a good one.

So I'm up north again with my mom. I'm on my MacBook again here,

and just thought

I'd take a few minutes and just jump on the charts with you guys,

talk about

the charts, and then answer a couple of questions

that I've been getting

regarding how I trade the fractal model.

So let's go ahead and jump on in here

and talk about this. So

one of the things that I get asked is, you know, "How do you trade the fractal

model? What do you look for?" So I just wanted to

show you guys this.

I'm on the 30-minute chart. I'm looking at the six-hour candles.

Do not worry about the timeframe alignment. Doesn't matter.

What I want you guys to focus on

and draw your attention to is this

right here. I laugh because some people, like, they send me, like,

DMs like, "Dude, what's up with the 30 and the six-hour?

What?" So

anyway,

um, but look at the alignment here.

So meaning you've got candle one, candle two that

made the sweep, and then it closes back

inside and lines up evenly

with the previous candle. Let's jump to the 15.

We'll look at the four-hour candles to the right.

Grabbing my little tool here. Again, candle one, candle two coming

down.

You have the sweep that it shows right here,

and then it closes

back inside and lines up evenly

with the previous candle. So you've got this, you know,

basically even

alignment there at the bottom.

Now, I know that may sound cheesy, guys, but I'm just saying in all my time of

journaling and in taking notes, I have noticed that

these tend to be more solid

versus if you have one where the candle body comes down here,

and it closes down here. Now, you may still have a sweep.

Candle bodies down here still have a sweep.

That's not to say it won't turn around and go, because that does happen.

I've just found in my experience,

this tends to be the better setup to take off

in reverse.

So 15-minute chart. Let's go to the five minute,

and you'll see it here.

Again, looking to the right, and what do you see?

Candle one, candle two with the sweep closing back

inside and

lining up with the previous candle.

Love, love, love to see that. So I just wanna point that out,

guys, um, let you know that's what I'm looking for

in terms of the way I

trade. The other thing that I am looking for

and looking at is the higher timeframe fair value

gaps. Obviously, on all of these charts, I'm looking to the left.

Have we swept any

liquidity areas on any of these timeframes?

And then I'm also looking at

the higher timeframe fair va-fair value gaps, and have we tapped into

them for the first time? Tapped into them for the first time,

or are

they being tapped into

already?

And that's why you've got, or I've got, um,

different notations in terms of these guys.

So you can see down here, these have been tapped into already.

These are newly created ones that have been created

on the run-up this morning. Let me go ahead and just take--

I'll take the fifteen off for now just to kind of clean up the chart a little bit.

And so the way that I use these is oftentimes you will find--

I don't think we're

gonna see it today because of just the amount

of points that we have ran already, but usually what I will see, again,

it's not a hundred percent,

is I will see it come down,

hit this,

and then take off and bounce, uh, from there. Actually, you know what?

Let me turn,

let me turn the fifteen-minute back on, because there's,

there's several of these. So this guy was just

highlighted just like this one was.

But again, with the amount that we've ran already,

I don't think we're gonna have an additional turnaround at this point.

The other reason I say that is because when I look

at this current setup, this is looking pretty strong here in

terms of continuing

down. I mean, look at that fractal sweep right there.

So you got the fractal sweep itself, the structure of that.

Again, talking about the alignment.

I look at the, the,

uh, fair value gaps. Um, and that's, that's really it, guys, to be

honest. Uh, people ask, "Do you trade, um,

right off candle two when there's a change in the state of

delivery confirmed?

Do you wait for candle three?" And for me, guys, you gotta understand

that

long before the fractal model picked up the speed that it has right now,

I was already changed-- or tra-trading

off of the change in the state of delivery. That,

that made complete sense to me.

Um,

so I was already rolling with that at this point.

So when the fractal model came out and began to really pick up the speed

that it has right now, all of these pieces of the puzzle

kinda, kinda fit the holes that were in my mind.

Um, the C1, the C2, the C3, this

right here especially, the swing point that gets defined.

I mean, and, and that's why I gravitate, you know, more

towards the fractal model because everything logically makes sense,

and

there's other confluences that I use that help me trade the fractal model more

effectively. You know, people--

I think people get the impression that you can just trade off any fractal

sweep

that happens,

and to me, there's got to be more foundation,

uh, to do that.

Uh, you know, if you're gonna trade the fractal model

than just taking every sweep

right here. So anyway, just wanted to go through that, guys.

Sometimes I trade off candle two, again, depending on what's going on

on the chart itself, and there's some times that I will simply

wait, just probably like many of you do, I will wait for candle

three to form, see what that wick is gonna do,

and then, you know, go from there.

So

that's it, guys. Again, I'm gonna watch this because like I said,

this is what

I see

quite often. I don't-- I'm not saying this

is gonna turn around and head back up.

I don't know.

But this is what we usually see,

uh, right here. Again, not a hundred percent of the time,

but very often I--

we'll get that bounce where we'll come into this and then continue,

continue higher. So all right. I hope that helps you guys out.

I'm sorry the video got

a little bit longer than I anticipated, but just wanted to kind of clear that out

or, or clarify those questions,

uh, that, that you guys may have. So

anyway, you guys have a good one. I'm gonna go ahead and close this down,

wrap

things up, and I will catch you guys on the next

video.

Everybody have a good one.

And, uh, again, we got Fed rate decision tomorrow.

Everybody be careful and have a great day.