Understanding Fair Value Gaps in Trading

In my annotations when I was doing the lecture

for part four, you see

this gap here as first presented fair value gap, and it

is first presented fair value gap.

There's a distinction between first presented fair value

gap, then there is first presented fair value

gap

with displacement.

Now, I taught both of them. They're each an individual PD

array. The classification is one that has a

displacement. This gap has no displacement.

Displacement is where it's part of a run that takes out a high

or a low, and it's not doing that here. Okay?

This candlestick did not clear this high.

This candlestick did not clear that low.

But this candlestick is first presented fair value gap with

displacement.

Now, if you extend this in the future, there's inherently nothing wrong with

that.

It's a usable PD array. But if you recall how I stated

these things, I'm going to focus more emphasis

on one that has displacement, and it's the first one that does

that after nine thirty Eastern time.

Now, for the folks that are in the trader roundup spaces, you

all know, and I expect to see some of you that

were in attendance to corroborate my story here, because I

know there's gonna be a lot of folks out there that's gonna say that this was not

something I taught, when in fact it was.

It came by way of a, a charter member asking me a question

about

the first presented fair value gap.

For instance, like, this is a buy-side imbalance,

sell-side inefficiency.

Now, the characteristic is it's a buy-side delivery,

inefficiency on sell side. In other words, an up close candle.

The charter member asked if there was any significance.

If this is a buy side, what happens if you look at the

first opposite fair value gap opposed to that?

So in this case, we would look for the very first SIBI.

So if the first presented fair value gap in this case here is a buy-side

imbalance, sell-side efficiency, the opposite of that would be a SIBI

sell-side

imbalance, buy-side inefficiency or down close inefficiency candle.

The first presented

fair value gap with displacement here, because it clears this

high and this high, that is much more significant.

It's gonna have a little bit more emphasis placed on it than that of that.

But this gap here doesn't fall away in its importance.

In fact, it-