Boot Camp Day: Fair Value Gaps Recap

Overview

• Final day of the Fair Value Gap section
• Recap of the first two episodes
• Detailed explanation of how to use fair value gaps to make money

Key Concepts Recap

• Importance of fair value gaps
• Market reactions to fair value gaps
• Identifying fair value gaps
• Liquidity Sweeps
• Trends
• Break of Structure

Practical Application

Example: S&P 500

• Small uptrend observed
• Break of structure on the 15-minute timeframe
• Identification of imbalance (fair value gap)
• Waiting for market open before making moves
• Observations post-market open
  • Rally up into imbalance
  • Break of structure on lower timeframes confirming trend
  • Entry into short position
• Targeted exits at specific liquidity points

Example: GJ (GBP/JPY)

• Identification of high timeframe highs
• Break of structure on the 15-minute timeframe
• Multiple fair value gaps identified
• Retracement to fair value gaps confirmed by lower timeframe structure break
• Targets set at areas of liquidity

Example: GBP/USD

• Break of structure on the 4-hour timeframe
• Imbalances identified
• Lower timeframe structure break for confirmation

Key Takeaways

• Fair value gaps are used for retracements
• Ensure confirmations on multiple timeframes before entering a trade
• Use fair value gaps combined with liquidity sweeps and break of structure

Moving Forward

• Next Topic: Order Blocks
  • Part 1: Explanation
  • Part 2: Spotting them
  • Part 3: Practical use in trading
• Future topics: Equilibrium, Strategy

Psychology and Discipline

• Emphasis on mental discipline improvement
• Completing homework and active participation in boot camp

Conclusion

• Fair value gaps as a tool for retracements and confirmations
• Upcoming topics and continued learning
• Focus on combining psychology with trading techniques