ICT Inversion Fair Value Gaps and Buy-Side Liquidity

We're in a large consolidation here, buy side here.

The market rallies up, creates another area of equal highs.

It drops back down. Where is it dropping down into?

Inefficiencies here, and look real close. You see that right there?

Look at the bodies of the candles. That's the narrative.

That's the, the real story is in the, the bodies.

The wicks do the damage. Yes, we wicked through it,

but look where it closed.

We traded down. Look at the bodies close right there.

That's consequent encroachment. That's the midpoint of

that gap right there.

So forty-one eighty-two and a quarter.

The open on this is forty-one eighty-two and a quarter.

Oh, look at that. Inversion fair value gap.

If you ever have an inversion fair value gap, and here's for your notes, folks.

If you have an inversion fair value gap like that, and you have a fair value gap

that's just below that level inside of your, uh,

dealing range,

meaning you have this low to that high, this inversion fair

value gap, we would wanna see it trade through

that because we're bullish.

Buy side, it rallies through it. We expect...

ICT, tell me how to know when the fair value gaps shouldn't close

in.

Here's one of those signatures. Inversion fair value gap,

all this area should

stay open, or a portion of it should stay open, okay?

So in other words, it would look like this.

This is what you would anticipate as a fair value gap.

Some of you would see this entry in this shaded area here

as their multiplier, meaning that they would go long

when price dropped into

it right there. Other students would see this and say,

"Okay, I wanna see

it show me proof with the bodies

respecting either consequent encroachment or the high of the fair value

gap." Is there any body closing at the high? No.

We do have a body close right here on this candle at the consequent encroachment.

As soon as it does that, we now can trust that this area

here should not be traded down into.

Technical science, baby. Take notes.

So this run here goes for what? It takes out the buy side liquidity.

Now, folks that just simply watch one of my

videos, and they see the

relative equal highs and relative equal lows

that we like to target.

We don't look at this as we can trust this as a short.

We wanna see something that's gonna be at a later time used as a long to go

right back there and target those individuals.

So this area here would be a buy side liquidity pool, okay?

So that would be a first partial if a student would use this entry on this

fair value gap. They could, they could use this as what specifically?

What kind of entry would that be? Institutional order for entry drill,

meaning

that you're only needing it to go to that level or just below it of this fair

value

gap. Trusting because we have an inversion fair

value gap here, that's gonna

support price if we get a signature showing that either one of these

conditions occur, a body closes at the

high or closes at the consequent encroachment.

As soon as that happens, as soon as that happens, the

algorithm will immediately spool and go the other direction and

aim for delivery to the upside, going after buy side or any

inefficiency above old highs. Buy side's here.

It draws to this area here, right in here, and then what do we get?

Open, immediate rebalance, bang, hits it.

If you get an immediate rebalance, you know where it's gonna go.

I told you weeks ago that it was gonna go up here.

Even though we took out buy side here, how do you know when it's gonna take out

relative equal highs and reverse or when it's gonna keep con-continuing?

When you have a higher timeframe PD array that has yet to be traded to.

So I'm not gonna look at these equal highs being traded to and then reject and go

lower. That's just a partial, and I'm holding on,

looking for higher prices

and running into, you know, higher prices still.

End of transcript · 719 words

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