Market Analysis and Trading Strategies
I don't trade prop.
Twisted, twisted, Michael. So anyway, the, the buy-side
imbalance, sell-side inefficiency, we see it trade down into that
and use that as
first presentation or first utilization rather,
and it rallies up into a level,
and then we get the drop down right there. That candle validates it.
Next candle entry.
Entry. Then it draws down into this bit of
business
here, where we have this should act as an
inversion fair value gap.
It's validated right there. See how it closes below it?
So now this is gonna become an inversion fair value gap.
We have now this sell-side imbalance, buy-side inefficiency, which is
bearish.
We wanna see price utilize that. So now we have two nested
fair value gaps. Okay?
When you have that and it's part of a breaker,
okay,
that is a variant of a reaper.
Okay? Real, real nice. This is just basically the opposite of what I
did the other
day.
I was using the same premise, nested
first utilization, and then the other fair value gap will
oppose that.
So you're s- you're getting both sides of the equation
here.
Buy-side imbalance, sell-side inefficiency.
When we're bearish, it should treat it as inversion fair value
gap, and
this s- first utilization is sell-side imbalance,
buy-side inefficiency, so when
price goes back up to it, it should be bearish.
Now, because of the volatility,
I'm allowing for a little bit of
discrepancy, okay? Coloring outside the lines. Okay?
It's reasonable to allow for it because I told you the volatility was gonna be off
the chart.
And
I- I made a, a concession that while I was in the trade, I annotated, and you'll
watch it in the recording if you go on X and see it.
I said that, you know, with all this in here,
it could come up here and take that
short-term high and then wilt and go lower.
That's kinda what I was looking at, and you see here it might sweep this minor
buy
side,
then drop more. Okay. So I was, I was bearish in here.
I was allowing for the run-up here. My stop was nowhere near that.
You can see it in the, in the execution and the management.
And then we made one more time trading below it here with that close
below the inversion fair value gap.
So now again, we have a second
qualification and validation for this inversion fair value gap.
Do we get confirmation? Yes. We get a, a wick up to and a little
bit through
the midpoint, which is here. Okay?
But it then trades up the consequent correction of the fair value gap there.
So two things are occurring, but only with a wick.
It's going up to what would be permissible,
but where does the body close?
It closes inside the lower half of the inversion
fair value gap and outside of this
bearish fair value gap. There's a big, big piece of information right there.
The next candle should give you immediate feedback that you're on side.
Would you say that is the case here if you're short
up there?
Yes.
And then
it goes lower. You saw me open up the objectives a little
bit further,
and here is
register your opening range gap, consequent encroachment thereabouts, and
my fill is there.
So I fancied it a little bit, you know, to get a little bit more juice out of it,
and I had to walk away. So
I watched it on my phone, how it just kept going lower today,
and it was just
something that-
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