Transcript for:
Invalidation of Fair Value Gaps and Trade Setups

ay Ley MAA is the hawaian way to say Merry Christmas to you all right boys trading transformation going down in Hawaii all right so I don't know why I keep moving this [ __ ] but anyways today we're going to be going over um imbalances and how invalidations of them can either one invalidate a trade idea or two validate a new trade idea which is kind of like my take on a inverse fair value Gap I'll probably make that the title of this just for some clickbait ass [ __ ] I don't really believe in inverse fair value gaps but I whoa but I do believe in a fair value Gap getting invalidated as a Confluence so today's going to be pretty simple you guys already know about fair value gaps today we're going to be talking about invalidation of fair value gaps how that can invalidate a trade simply by a fair value Gap literally just getting invalidated by a closure underneath it or a closure above closure above it and then we can also talk about how invalidations of fair value gaps can be used to Riz up baby gr okay I don't know why I'm bugging out this morning I've literally made like a thousand Tik toks and it's like 7 a.m. and I'm just like so wired bro you know what I really want to do I would love to meet baby groon he just seems like just such a weird little guy he's got to be old now he's like medium grank now he's no longer baby grank dude that's shit's going to live with him for the rest of his life talk about digital footprint bro imagine being like 22 years old and people are like bro you're baby groon oh that must suck imagine Turkish K quandel Dingle though imagine when he's like 24 and people are like yeah Tik Tock Riz party is that you damn anyways uh let's start sorry okay also I'm trading PM session today so stay tuned if I ever end up taking a uh a trade wait 13 wait why is this [ __ ] such a 16 on some tweaker [ __ ] I got to start trading in like an hour cuz that's when the the kill so starts okay cool okay damn damn I actually really wanted to uh to use one of my other trades for this more trades hello is your name more trades yeah it is heard a lot about you yeah you just explain how you break my structure so well okay chill um let me lock in um okay this is a good one right here okay right here so again this isn't necessarily our execution time frame but this is a good example example of it right here we get a sweep of liquidity we get a break of structure okay and then we have a fair value Gap right here okay so this can do one of a couple things we see this break of structure right here right and then we see the fair value Gap get formed so imagine we're on like the 15minute or the 5 minute and we're like okay bet this is where we want to enter obviously if we get a closure above this okay maybe there's other confluences okay like we have this breaker right here okay yes it gets respected off of this okay and yes we have this order block and yes it gets respected off of this as well but then boom it gets invalidated afterwards but we also invalidate this fair value Gap okay so I mean it's literally as simple as like it just closes above it so that's that's the first way right just purely invalidation of a fair value Gap boom right here okay but let's say so that's that's in the down downside Direction now let's say that our bias was bullish on this okay so boom there's invalidation one where it's just like purely the fair value Gap gets invalidated and we're no longer going to take a trade off of it that's the one use of it where we literally just get a closure of above it and then it's like okay scrap that fair value Gap it's not working for us okay and then the second use is where we can potentially use it for a Confluence for entry okay so and again I'm not that big of a fan of like inverse fair value gaps where you have to wait for it to come back down in and like get it tapped into I'm more of a fan of it just like a bears fair value Gap getting inv validated when our bias is bullish and we close above it invalidating that bearish fair value Gap so let's say that our bias was bullish and we see [ __ ] it let's see like we sweep out these hourly lows we sweep out these hourly lows and let's say like we already have a bunch of confluences we break structure and there's a bearish fair value Gap right here imagine we already broke hourly structure within here let's say there there's like a break of structure right here okay and we're looking for confluences we can use an invalidation of a bearish fair value Gap um as a bullish Confluence okay so let's say we already have our break of structure and then boom we get a closure above here that can be a reason for entries so again let's say we already have our breakup structure this can be a reason for entry and we can even put our stops underneath that bearish that old bearish fair value Gap because again it could be used for a inverse fair value Gap even though I'm like in my eyes an inverse fair value Gap is a pretty madeup concept it's like bro like you can see that this fair value Gap gets invalidated and then what happens another fair value Gap gets formed uh um but that's besides the point we can use this invalidation of the old bearish for Value Gap as a Confluence to one either enter or as just like a Confluence for a potential trade setup so just like how we have regular fair value gaps just like we have breaker blocks just like how we have order blocks just like how we have equilibrium this is another Confluence that we can use to either enter into a trade or to set up a trade so in this standpoint let's say that we're actually looking for a trade we can say that um okay this is another good example okay look let's say we were bullish we see a sweep of this and then let's say we're like actually looking for a trade setup okay we get a break of hourly structure and let's say we're just dumb asses and we don't see this regular ass fair value Gap and we're like oh we have this bearish fair value fair value Gap right here and let's say we don't see this break of structure okay all of this is just hypothetical and we see a closure Above This bearish fair value Gap okay showing that this bearish fair value Gap is now invalidated that can be a reason to go long on this candle put your stops underneath the old bearish for Value Gap and then boom price continues higher okay um let's find another example of this and again obviously we need it can't just be like oh be bearish fair value Gap gets so like this is a perfect example of when this [ __ ] wouldn't work because look okay we get a break of structure to the downside right here damn shut the [ __ ] up can y'all not tell I'm making a [ __ ] YouTube video come on guys pipe down anyways but look like we can tell that this is an obvious bearish setup right we see a sweep of liquidity we see a break of structure we see an order block right here we see a breaker block right here and we see price push into that order block push into that breaker block just because we invalidate this bearish for Value app doesn't mean like holy [ __ ] we're going to go bullish right because this is an obvious bearish setup so again just like all of our other confluences it's not like oh c order block take trade or see fair value Gap take trade right that's not going to work we need all of our other confluences to be in line with it like a sweep of liquidity a break of structure all of that right so this is an example where that [ __ ] wouldn't fly that [ __ ] wouldn't work because again we're still in a downtrend and we pushed into just another one of our confluences we're still with an equilibrium all of that okay so let's just keep drilling this [ __ ] out and show other examples of where this [ __ ] would work um let's get down to business I need to take a so bad I gotta take a peee really not much going on let's go over here I got to be so bad bro boys I literally might pause this video and then go take a piss or I might just take you guys with me um okay so this is an example of where like we get kind of two in one okay so we see a sweep of these lows okay and we kind of get two confluences in one like I was saying we get a sweep of these lows we get a break of structure to the upside and in turn with that break of structure to the upside we invalidate this bearish fair value Gap and at the same time we make a bullish fair value Gap both end up getting filled so and this order block ends up getting filled and then as we can see boom price ends up moving higher okay um this can be another example here where we get a sweep out of these lows okay we get a break of structure right here invalidation of this fair value Gap um and then we end up taking out these highs right here okay so boom we get a break of structure to the upside on this candle you know maybe you find some [ __ ] within here but okay we invalidate this fair value Gap we end up seeking out this liquidity right here and this liquidity right here man I got to take this boys I'm literally in a swimsuit I might as well just go pee right now have bubble guts bro be normal I gotta be damn whole bunch of choa city in this [ __ ] here let me go into like a market open I wonder if today's market open I heard that since it's since I'm in Hawaii um [ __ ] did I remove all the drawings damn it I gotta be bro here let's go to es I heard that today's market open was pretty shitty because I was watching more trades Tik Tok um just kidding but seriously okay so just going to the hourly okay okay there really wasn't [ __ ] [ __ ] today but let's just okay oh here look okay so today we sweep out again is this a trade that I would take probably not um but whatever it's a good example today we get to sweep out of these lows okay and we have a bearish for Value Gap right here we see price boom close above that [ __ ] we can scale down even further see we get a closure above we come back down retest that inverse fair value Gap but in turn there's a bunch of other confluences here okay like we just have um a regular ass like smaller bullish fair value Gap from this Wick to this Wick um you could have used equilibrium I'm pretty sure equilibrium got hit I'm literally about to pee my pants boys yeah so boom we can see that equilibrium got hit inverse for Value Gap got hit um you could probably scale down into the one minute um find a break of structure to the upside boom cool enter right here take profit you know find some sort of Confluence over here um wow boys I'm suffering um find some sort of take profit based off this I'm going to find a way to pause this okay wow I can't even pause it holy [ __ ] all right okay well okay um here okay okay um okay whatever but anyways you guys see this this was a 15minute bearish fair value Gap we get a closure above that we retest it and then boom price moves higher we take out these highs cool cool cool could have taken like a small little like one two [ __ ] I don't know if you enter right here take profit right here I don't know you might have gotten like one to one rist reward on that if you're entering off the one minute time frame I'm fighting for my life okay [ __ ] it this is going to be really weird I might take you guys with me I hope no one steals my [ __ ] okay [ __ ] it let's go goyard backpack with like 150k worth of watches just sitting out in the open let's rally I hope they don't find this sus I'm just going to act like I'm on a business meeting with you guys this is so weird me walking into the B but yeah guys um print out the balance sheet Damien I'm sick and tired of this [ __ ] Daman you have to print that [ __ ] out and if you don't you're fired sorry I had to act professional this is so weird okay I'm going to kind of hide you guys stay calm [Music] oh wow if you're asking if I wash my hands the answer is no you know why cuz if you touch your penis when you go pee like what like it's a urinal for a reason let that [ __ ] spray you know like I'm literally just ripping my shorts down and just unloading the clip wow all right that was a risky play boys anyways goyard bag still here locked and loaded okay so let's lock back in anyways wow I feel so much better I can actually Focus okay let's go to NQ see if we have an example of this WOW boys I can literally like breathe again okay we don't have the invalidation until all the way up here okay let's try and find more examples of this wow I feel so much better guys infinitely better off this [ __ ] let's go to like the five minute some buy like that oh here we go okay right here okay I mean just this leg down I'm assuming that this was like a big ass sweep of liquidity there we go okay we swept out all these lows I'm pretty sure this was on like CPI or some high impact news day if I remember correctly that was so crazy I can't believe you guys want pee with me anyways we come down downstairs we sweep this out okay from here when do we get the invalidation of the fair value Gap right here we don't necessarily get a break of structure but okay this can be one of our confluences okay we come back down into this fair value Gap um again or into this inverse fair value Gap again what other confluences are we hitting um we're hitting equilibrium off the back end boom damn chill Jal boom okay okay we hit equilibrium and then we get a break of structure right here bet price ends up moving higher okay that's pretty much all that it is okay I'm not necessarily a huge fan of using inverse fair value gaps like getting tapped back into as like a Confluence to take a trade off of but I am a fan of seeing fair value gaps getting invalidated and taking trades based off of that okay so again like yeah you get better entries by Price coming back down and like retracing into it but we already have so many other confluences where like I bet if we go into the one minute on that [ __ ] damn come on guys if we go into the one minute I'm sure we can find something right like boom huge one minute for Value Gap within here okay break of structure right here bet like long John Silver off of that you know take profits OT du okay um okay this is like another example of this I mean one minute fair value Gap there's a [ __ ] ton of like bearish one minute fair value gaps within here okay it gets invalidated we come down we fill my guess is we hit equilibrium off the back end on this piece boom we come down fill equilibrium bullish reaction up okay it's like they're building the [ __ ] Great Pyramids of Giza out here like hauling two ton [ __ ] rocks in wheelbarrows right next to my [ __ ] anyways we invalidate this bears for Value Gap we get a closure of cool Confluence one Confluence two we already had a break of structure okay and then boom we come down into equilibrium we get a bullish reaction out of that cool you can long off that stops under our invalidation point which would have been off of equilibrium or [ __ ] it you can put it underneath this fair this bearish Fair Val the last bearish for Value Gap that was all the way down here that got invalidated whatever you guys want to do but this this is just another Confluence that I said I wanted to make a video on because I use it use it occasionally um kind of as like a supporting Confluence and also sometimes occasionally as an entry Confluence so there we go um not really much else to say on this um we have around 30 minutes until um or yeah like 40 minutes until I'm going to be getting ready to trade but uh PM session so I'm going to go ahead and upload this again this is a good example okay we push up invalidate the SP value Gap we come back into it scale into the 5 minute see if there's anything juicy within here uh not really we sweep out these five minute lows we can see if we're getting ay on the one minute um but yeah there's inverse fair value gaps explained slash invalidation of fair fair value gaps explained for one we already know like if a fair value Gap gets invalidated within our trade bias cool it just is invalidated we're no longer using it as a Confluence and if we see a fair value Gap in the opposite direction of our bias and it gets invalidated we can use it as a Confluence hopefully you guys enjoyed this video I'm going to go trade PM session now let's lock in I appreciate you boys trade and transformation a [ __ ] who knows what I think 33 that's my guess Angel Number all right bye boys