all right guys welcome to another little video so today we are going to be talking about fair value gaps and per usual we are going to introduce these guys first by talking about what they are and why they are beneficial to us so without further Ado let's jump right into this jint okay fair value Gap slash imbalances okay you guys will hear me talk about both of these it's pretty much the same [ __ ] um I I really there's no reason for me to use any different name for them that's literally just how that [ __ ] goes I end up just saying the names like interchangeably so whenever you hear fair value Gap whenever you hear imbalance it's pretty much the same [ __ ] okay so first of of all what are they okay so the reason why I like to say imbalances is because it's an imbalance of Market orders okay and okay that's kind of as simple as I could put it so it's an imbalance of Market orders and it's a price range that lacks orders in the opposite direction of Market sentiment so when we go into identifying them it'll be a lot more obvious where you guys will see what I'm talking about but for the time being just try and understand this okay it's an imbalance of Market orders meaning there's a lot more buy orders or there's a lot more sell orders than buy orders there's a lot more buy orders than sell orders and it's a price range again that lack orders in the opposite direction of the market sentiment so again if we see just like a huge influx in price and we make an imbalance that price range typically lacks orders right so if we see a bunch of buy orders and we see an imbalance get formed that price range will typically lack a lot of sell orders okay and same thing if we see a big rip down okay if we see a big rip down that price range and we make an imbalance that price range typically lacks buy orders okay so why is this beneficial this is going to be quick one why is this beneficial to us well first of all if we know well let me just write it out first damn okay okay why is this beneficial to us if price revisits that price range so again let's say we see a big rip up and we see an imbalance get formed and we know that that imbalance is lacking sell orders and we see price revisit that price range where there's a huge imbalance where there's a lack of sell orders within there and we see price revisit that area and we see buying power out of that range with the same Market sentiment right so if Market ripped up we see an imbalance we revisit that and then we see buying power out right that's the same sentiment with overall Market bias or Market direction we can assume that more buy orders were filled within there and price will be able to continue in the direction that it was going because more buy orders were filled within that imbalance where a lack of sell orders were makes sense sense and that's all it is that's why it's beneficial to us and this is helps us predict where the market wants to continue to go and you guys will see a lot more information on that when we talk about identifying them okay but for now we just need to understand it okay for Value gaps whoa are an imbalance of Market orders and it's a price range that lacks orders in the opposite direction of Markus sentiment and why is that beneficial to us because when or if price revisits that price range with the lack of orders and then we see buying power or selling power out of that range with the same Market sentiment right like either that rip up or that rip down we can assume that more orders were filled and price will continue in that direction that price was going so this is like a continuation Confluence okay and we'll see when we put everything together how this can benefit us okay this is a super super useful tool okay now different than liquidity right and this is something I should have mentioned about order blocks as well liquidity can be used as a drop as like a magnet for where price wants to go to right because it's seeking to fill orders versus this and Order blocks are continuation confluences meaning when we seek liquidity and we fill orders right we're we're constantly seeking those highs and lows within the market to keep filling orders to keep the market moving versus these are just continuation confluences meaning they don't necessarily have to get hit to keep Market going in the direction right that's how why I said if price revisits that price range and we see buying and selling power out of it right because it's just the possibility most of the time does it happen yeah but sometimes it won't happen Okay this is just extra extra Confluence that price is going to continue in the direction that it was going in the first place and I'll explain more on that when we get into identifying these things okay but for the time being this is what I want you guys to understand it's an imbalance of Market orders it's either lacking buy orders or lacking sell orders depending on what direction that big move up or down was okay and if price revisits that price range where we saw the lack of buy or sell orders and we see buying power or selling power out of that range you know depending on what the market sentiment was we can assume more orders were filled and price will continue in the direction that it was going cool continuation Confluence order block is also a continuation Confluence um something I forgot to mention we'll go ahead and cover that super quick right now so same thing right we know that boom this leg up is the order block does price have to does is price needing to come back up up in here in this price range to fill those orders no but if it does and if we see selling power out of that we can assume that more sell orders were filled and price is going to continue in the direction to the downside it's the same thing with imbalances and fair value gaps okay same thing to the downside or sorry to the upside we see the sweep this is the order block right this leg down do we have to revisit this price range no price could just move higher and higher and higher if that liquidity sweep was all it needed but if price revisits this area and if we see buying or selling power or in this case buying power out of it we can assume that price is going to continue higher cool cool okay so that being said fair value gaps day one part one locked in strapped up we're good to go all right I will see you guys whenever the next video is all right peace out