welcome back folks going to do a quick little review here and I'll squeeze in another approach to using some PD arrays I've already taught and how we can kind of like build a model around it that'll come at the end of the video here for now let's take a quick look at the higher time frame on the US dollar Index last time we talked I mentioned that we would be looking for potential run up into here this was the bide liquidity pool I mentioned we were driving up into that we've seen that and then the later time we might see this actually happen it did we stayed bullish we haven't been looking for lower prices on dollar uh there's a small little volume imbalance right in there watch that going into next week and then obviously the buy side resides here so a really strong run below these relative equal lows sell side liquidity taken fair value Gap traded up and continuously moved into the B that we had here here and here longer term we have this so dollar showing its underlying strength and it's still going to put interterm long-term pressure on euro dollar wanting to go lower and pound dollar wanting to go lower speaking of Euro here is the daily chart for euro dollar and I mentioned the inversion fair value Gap we trade up into that look at the bodies again again respecting consequent inion which is the midpoint of any Gap Market broke lower taking the cell side out here then we moved aggressively in this direction towards the cell side throughout the entirety of this week it would have been nice to see this trade up into this small little Gap here I was kind of looking for that today but the failure to get up there is you know it's indicative of heaviness heaviness meaning that the Market's likely to lower and again attack that cell sign so with higher dollar prices we're going to stick with the idea of looking for lower prices for fiber and fiber is just the nickname for euro [Music] dollar okay cable or pound dollar see we have a inversion fair value Gap here the Market's been breaking lower next draw liquidity Still Remains at the sell side liquidity here this one we traded up into this small little fair value Gap there you can look at your lower time frames we trade up into that this is institutional Oro entry drill where it goes into a partial but less than half of a fair value Gap there and then sells off so we'll be looking for near term we have sell side resting below here and we have the cell side below here so we're maintaining a bearish stands still for British pound so if you guys appreciate or like these longer term you know bias based ideas for Forex I'm not going to be drawing your attention to the smaller time frames because I don't think that it is something that we should be doing right now it's something for you to do or your own analysis but from the higher time frame I'm just lending my experience to give you the bias and you can see pretty much it's been delivering like Gang Busters so uh if you like that kind of stuff you want me continue just give this video a thumbs [Music] up em Min S&P futures contract September delivery daily chart and we just fell short yesterday going into this discount fair value Gap to just got really really close but not quite getting into it we have this buy side and balance sell sign efficiency between this candle's low and this candle's High that's the blue lines here that's denoting that buy side balance s sign efficiency and this red line is consequent encouragement or midpoint between this candle's low this candle's high so all this big movement up here it's buy side and balance sell side inefficiency so it needs to see what lower price is delivered we seen that happen here and this price movement here is is in my opinion what we're having to deal with on the lower time frame so if you watched how we traded on Wednesday Thursday and Friday of this week for index Futures unless you were Ultra shortterm like one minute scalping five minute scalping um You probably experience a lot of difficulty in terms of navigating you know the EB and flow of intraday price action so whenever we have these kind of like bookends think of it like that okay we have strong opinion ated reasons that we can make the case for higher prices and for lower prices and when we have that everything makes trading with a great deal of precision that would otherwise be apparent in all time frames it kind of reduces it down to a very infrequent well at least you may observe that it will be infrequent we've seen that Wednesday Thursday and Friday not the latter part of Wednesday not the first part of Wednesday but the afternoon of Wednesday Thursday and then Friday's trading we're seeing all that in here so it's going to have to move outside of this range definitively for me so in other words it's got to either trade above the buy side B sell sign efficiency is high or it's got a trade below the buy side and balance sell sign efficienc is low why while we're in here I will not be interested in taking any trades for em mini S&P this area here is a fair value Gap from this candle's low this candle's High the Shaded area is denoting that on the hourly chart you can see how we had Fairway Gap here institutional entry drill which is a partial entry but just falling short of half the Gap breaks down one more in time does the same thing here look at all this range bound trading right in there see that then we break lower small little range break lower small little range and this placement to the downside trading to the low of the inefficiency or the bide Bal sside efficiency on the daily chart remember the blue lines denote that big singular up Clos candle and then the red level is the midpoint of that and that shaded area is the fair value gap on the daily chart we Tri up to consequent encroachment here roll over and just fell short of trading into that inefficiency on the daily chart and sweeping below this low so it fell just short of reaching into that and then we had this gnarly Thursday and Friday a trading range for E Min S&P returning back to consequent encroachment 15 minut time frame again you can see how we had Friday's trading Thursday's trading in the afternoon retracing back up into consequent encouragement so a really nice sell off here in the morning which was really easy to see that follow this price action here this right here you have to be extremely Nimble and know exactly what you're looking for if you can get it take it and stop otherwise you can get chopped up in here over trade or do a lot of things so otherwise undermine your growth or create draw down for your account so these are problematic areas until we leave this range I'm not interested in touching it so if we stay within this when we open on Sunday and trade into it on Monday my hands will be away from all asset classes because my only interest right now in trading is the index Futures S&P and NASDAQ NASDAQ daily chart similar vein we have depos balance sell efficiency defined by this candle's high this candle's low midpoint is consequent encouragement and price will have to leave this buy B sell efficiency either higher or lower before I'm interested in trading because we had this run up I like the idea of potentially trading down to 15126 and a half I mean that that's what I'm interested in seeing I want to see that happen because we've seen it happen for ES the run up we seen imp partial uh decline which we'll look at that and I called that level real time before it actually is delivered on Thursday on Twitter or we could rally higher and come back out of this buy side and bance out efficiency and then resume going higher and reach for the buy side here and completely close in this inefficiency over here in the form of a CBI so because the analysis is conflicted meaning that we could range Bound in here for a little while and still deliver to that 15,26 A5 that's what I'm kind of expecting to happen but I'm not excited about taking any trades in here until we definitively leave this buy sign balance sell sign efficiency the reason why is because even though I like the idea of going short I could be wrong and it may be just accumulating in here to go higher because this Market stock market is absolutely rigged okay I mean more more than it really is okay and other time uh they're propping this market up for political reasons uh there's no reason for and there's no justification for the shares being at the levels they are for stocks right now it's just it's not warranted at all so because we're seeing conflicted both sides of the narrative on the higher time frame that forces your hand to be a intraday scalper you know short-term trading swing trading you have to be very very precise you you get really one entry and that's it so in a very small one minute time frame you'll have a little bit more opportunities to navigate but you have to have experience and be nimble so I'm just showing you my cards I'm not terribly excited about going into next week until we leave this B B cell efficiency on the hourly chart you can see we ran buy side here into a bearish order block we broke down bearish order block here displacement to the downside swept the cell side here entered the buy side and balance cell efficiency rolled over after institutional order entry drill here which is just a partial entry into this Cy I try to keep the charts clean that way I have less to talk about get through this chart discussion quicker for you this evening we rolled through went through half of the daily buy sign and bance cell side efficiency which is the consequent encouragement level that blue line which is just midpoint between the lower level and the higher level of the daily buy sign and balance sell sign efficiency that One Singular big green Candle on the daily chart that's the reference points here for it on the hourly chart so we rolled over and I gave on Twitter on Thursday I said to have 15,1 85.2 and 15,17 noted on your chart and we went down the bodies respected both of those levels we Wicked through both of them 15175 is this candle here so there's a buy sign B sell sign efficiency between this candle's low this candle's high with this one big candle so that's where that 15, 175 level came from the 15, 1885 and a quarter level which is here is the daily buy s balance sell s efficiency 25% quadrant okay so in other words if you take this level here and this level here and divide it in equal parts four equal parts half is here here so halfway between this level and here is this so it's the lower quadrant 25% level of here this is that's not quarters Theory by the way right away I know some think oh he's teaching quarters Theory it's not quarters Theory I'm looking at an inefficiency and I'm grading that just like I teach how to grade a price swing in my core content so these are all algorithmic signatures that price will respect and adhere to so it's important to know what they are and how apply it to your charts and then anticipate these types of responses Market rallies off of that on Thursday comes back in and ret trades back to the consequent encroachment midpoint and then sends us back up to the high end of the daily b side of Mel so efficiency high on the 15-minute time frame you can see how again on Friday and on Thursday just a really gnarly trading range I mean you can grow very frustrated trying to trade this if you're 10 trying to anticipate a follow through either higher or lower you have to be very very Nimble and look at the lower time frames pick your shots if you get a winter stop for the day or the session and be done and try not to force your hand too much all right see here's the one minute Candlestick chart for the NASDAQ and I'm going to teach you something that employs my inversion fair value got now before I get into this there's a a couple points I want to make because there are a couple Romper Room mentors out there that will tell you that a fair value Gap is something that is simply a support or resistance level on a lower time frame that's not true that's not what it is it's an actual inefficiency this little area in here where one single candle pass up to the upside that's a bide and B cide efficiency so it's not had any overlapping with any other candles after it formed on the downside so it's lacking what sells side delivery so it's part of this swing low part of an expected redelivery between the high of the daily buy sign cell sign efficiency which is this level up here and the low of that same daily B Bal and cell efficiency okay so if we are up in the upper portion of that range because here's the consequent cment between this level and this level and we're seeing the market start to break down it's doing here this inversion fair value got this is part of what many of you ask how do you know which fair value Gap is going to be an inversion fair value Gap how do you know which fair value Gap to use I'm employing a lot of different things time and price I'm using institutional Market structure not your classic higher high lower low crap because that's that's infancy that's it's to myopic you need to know what you're looking for in the grand scheme of things price was already working its way down into and towards this redelivery on the buy side and balance s sign efficiency low that's this price level down here so if we are looking at this price leg running higher with the expectation that we're going to see it roll over this becoming a fulc chome Point high to low project it down that gives us a reasonable expectation to see it reach into a discount range which would be half of the range between this high and that low which makes the daily buy side and balance soide efficiency if your first time watching this I already said enough to completely confuse you but I promise you if you take a few times to watch this video the only thing I'm stating is all of this price run here going down is just simply trying to get down to this level here because it was One Singular Candle on the daily chart that went up so the market will efficiently deliver sside delivery which is not sell-side liquidity sside delivery is just the market goes lower it books price on the downside in other words it's offering price between the Range High of the daily buy sign B sell sign efficiency at 15361 A5 and the low of that daily Candle by balance efficiency at 15,26 A5 so the only thing I'm stating here is if we were to take that range which is the daily candle and I I'll explain again what what I'm showing you here on the daily chart but for now conceptually just imagine if half of the range from that price level here and that price level here half of that range is here anything at that price level or higher is a premium if we're bearish we really want to be selling short up here with the expectation that it's going to aim for something down in the lower half and ultimately perfectly delivered to this lower level 15,26 A5 it need not do that so what levels are we looking for because we're not dealing with zones well what's the the lower quadrant lower quadrant price level is here 15,1 185 and a qu half of the range on the buyid B sell sign efficiency on the daily chart which is this high and that low that's in purple half of it's here half of the half point and the low is the lower quadrant point so that's why I was saying on Thursday to have these levels noted and then you have the Tuesday August 29th 2023 10: a.m. 1 hour High sign balance C sign efficiency low and I already mentioned that before we drop down the lower time frames so everything I'm saying here I've literally pointed to and referred to what it is in this very video so you don't have to go anywhere else searching for anything it's just a matter of listening to what I'm saying here and then finding it in the chart and also following along in the narrative as why am interested in this very fair value Gap at all because we're in a premium I'm expected this to see this price leg roll over it already broke below it here so it rolls through I'm not interested in selling short there because I know that time is a bigger Factor so when price is running up like this I'm not trying to chase that I'm not trying to be a um an early participant I want to see price get to 8:00 8 clock is here so the market trades back down through it again we're not supply and demand so every time you see a little rectangle here the nefy the first the first- time viewer or someone just has a a super superiority complex they'll say that I'm teaching supply and demand it's absolutely not because I'm looking through all of this to go right back to that specific candle right there and its specific price levels it trades up to a here now because of time I'm expecting it to have a better influence over price does it send price lower yes one more time it comes back up and hits it again does it go through it again no it's stopping because it's referring right back to that price point right there so if this is a fair value Gap and I was bullish I'd be interested in buying it when it was going down into it here or if it went down through it and it came back above it now I would treat it as you know a reclaimed discount array I'm looking through these candlesticks to a specific PD array but I'm applying narrative which is a very hard thing to teach because it's learned conceptually by experience seeing over and over and over again that's why I'm trying to tell you that what some of you are asking for is a one shot one kill video where it literally answers all your questions in one visit one sitting one View and it's it nothing is like that okay but uh this approach to using an inversion fair value Gap because otherwise it would be bullish here it's not because we're in a premium I want to be short I want to be looking for shorts because I expect that daily chart that big bullish green candle is going to be redelivered to the downside and the first level I'm looking for is the halfway point and the quadrant the lower 25% which is here and then dug into the hourly chart by CB cell sign efficiency which is what I mentioned earlier before we got into this part of this video that's where those two levels came from and I quoted on Twitter before we got down to it the way that this inversion fair valap is being implemented is my model madus madus is a slang or nickname used for the M2 machine gun okay so that's just the way my mind works and the way I kind of like classify things I have 81 different PD arrays and there's several things that I can do with each one of those PD arrays this is simply an inversion fair value Gap how I use that fair value Gap is a model and if we have a inefficiency as outlined here between the daily buy B cell efficiency high and low we're bearish we're looking for lower prices we get this Market structure in agreement and then time of price we're expecting an 8:30 delivery we can get in here and use this and get ahead of yes get ahead of and enter before the news it's like an x-ray view tips your hand or tips its hand to you and tells you this is what it's likeing to do and you have the inefficiency here trades up into it and at the delivery of 8:30 news and then we see it run away on the employment numbers trading down into the lower 25% quadrant between between this low and this High lower quarter or quadrant level is here Trad still here and then trades to the 15 175 level and then ultimately we seen it go higher from there I'm going to zoom in a little bit there's that Gap so that inversion fair value Gap within the context of expecting it to trade lower best case scenario you know being the low of the daily B so icy for Nasdaq but needing it not to do that to profitability which is first partial would be here at consequent encroachment and you let it run some more to get down to the lower quadrant and they that level you want to take a partial and then if you can get down to another discount array which was in close proximity which is only 10 handles away which was that hourly B Bell and cell deficiencies low on this date and time on on your hourly chart so that's why it's annotated that way you can go back and look at on your own charts I want to take you back up again just know that this is what I'm showing you here this range how I'm employing the inversion fair value Gap there here for myu Mau is a model that you can use a inversion fair value Gap when you are expecting price to run right back down a inefficiency that was buy side and balance sell side in efficiency this can be reversed when you have a sell sign and balance buy side efficiency and you're expecting price to go higher the inversion fair value Gap here would be something after a low and then would you know trade back down to it and then send it higher so everything here is just completely reversed and I know if you're brand new to my stuff I'm sure I'm quite certain you're you're probably confused right now and you have to study but really what I'm saying here is this level here and this level here on the hourly chart is this this One Singular candle and what I'm saying is on Thursday I was anticipating the run down into at least the lower quadrant the lower 25% between this and this which are these levels here respectively this candle's low this candle's high so we have One Singular pass higher we expect lower prices to be delivered the same way just going back down to redeliver over the inefficiency here it was buy side delivery but now it needs sell-side delivery because it's inefficient in that regard because there's no other candle between this candle's low and that candle's High only one candle went higher and that range defined by that candle here this low and that high needs to have efficient delivery that can only happen by having price go back down inside this entire range lower quadrant halfway point if you have a inversion Fair value Gap and you're bearish and you're expecting a news report and it's tipped its hand to you saying okay we are likely to break lower in Market structure and a lower time frames we can anticipate this [Music] drop that's occurring in here [Music] drop and that's occurring in here drop and zoomed in inside that premium to [Music] Discount that's the inversion per you got M second opportunity to get into it again it breaks aggressively inefficiency once more at 8:30 employment numbers runs aggressively partial here partial best case scenario would be if it would deliver to the low of the hourly but I mentioned real time I said take your profits don't be greedy and then we seen it go a little bit lower than my objective on that particular day but never got to the low of the daily B cell efficiency being this level here it never got to that level so I'm certain it's a lot for you to digest but every one of my PD arrays you can apply it to specific elements of Market structure and how you anticipate price delivering and you can plug and play each one of these pdas with the expectation that the model will deliver under a specific premise we're expecting this level here to this level here be delivered with downside delivery in our sells side delivery as price was going lower it's not random it's not going to some random level it's going to very specific price levels and if I'm going to use this inversion fair value Gap I can use it in the context of myu modu is simply a model utilizing an inversion fair value Gap so that PD array it's an advanced version or application of inversion fair value Gap but it takes you right back to the core context of where are you in price what's it likely to go to next and are you in a shortterm premium or short-term discount if we're bearish and we're in premium we can anticipate price reaching down into a discount but not some random level very specific levels and it need not go to the best case scenario which would be the low which I still hold true that I I suspect at some point maybe next week that we'll try to reach down here until I'm proven wrong and I'm I'm okay with being proven wrong I'm going to be trading it but the idea is I expect it to trade down here because the E many S&P has already traded it to its respective bid and bell and cellid efficiency for its daily [Music] chart all right folks that's it for this one enjoy your weekend thanks for watching until I'll talk to you next time be safe