How to Trade High Time Frame Fair Value Gaps
58sThis segment teaches a complete trading strategy in under a minute, packing actionable value that's highly shareable for aspiring traders.
▶ Play ClipAI Summary
This video presents a trading strategy based on high time frame fair value gaps and specific entry formations on lower time frames. The creator demonstrates a step-by-step approach to entering trades, setting stop losses, and determining take profit levels using Fibonacci retracement.
Chapters
[00:00]
High Time Frame Fair Value Gap
The strategy begins by identifying a fair value gap on a one-hour time frame, which serves as a key support/resistance zone.
[00:15]
Lower Time Frame Entry
After identifying the high time frame gap, the trader switches to a 5-minute chart to look for a specific formation to enter the trade.
[00:30]
Bullish Fair Value Gap Signal
A bullish fair value gap created inside the zone is described as an extremely bullish signal, as these gaps tend to hold well.
[00:42]
Entry and Trade Management
Entry is placed at the formation, take profit is determined using Fibonacci retracement from the liquidity grab to the recent high, and stop loss is set below the recent low.
The strategy relies on confluence between high and low time frame fair value gaps, with a clear entry, stop loss, and take profit plan. The video suggests that with good spotting, this approach can be profitable.
Mentioned in this Video
Tutorial Checklist
5
00:42
Use the Fibonacci retracement tool from the liquidity grab to the recent high to set the take profit level.
Study Flashcards (4)
What time frame is used to identify the high time frame fair value gap?
easy
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What time frame is used to identify the high time frame fair value gap?
easy
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One-hour time frame.
What time frame is used for entry confirmation?
easy
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What time frame is used for entry confirmation?
easy
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5-minute time frame.
00:15
What tool is used to determine the take profit level?
medium
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What tool is used to determine the take profit level?
medium
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Fibonacci retracement tool.
00:42
Where is the stop loss placed?
medium
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Where is the stop loss placed?
medium
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Below the recent low.
00:42
💡 Key Takeaways
🔧
High Time Frame Fair Value Gap as Key Zone
Establishes the foundational concept of using higher time frame gaps for trade context.
💡
Bullish Fair Value Gap as Strong Signal
Highlights a specific confluence signal that increases trade confidence.
00:30
🔧
Clear Trade Management Rules
Provides concrete, actionable steps for entry, stop loss, and take profit.
00:42Full Transcript
[00:00] And if you get good spotting you can make a ton of fn money First step. go the one hour time frame You want a high time frame fair value gap. We have one right here and price has came down to it and is starting to respect it.
[00:15] go to a small timeframe to get our entry. I like to use the 5 minute timeframe for this. We want to see a specific formation happen in order to enter this trade. Which is exactly what we got here. As you can see Price left a bearish
[00:30] We also see a bullish fair value gap created inside this zone as well. This is an extremely bullish signal. And these fair value gaps tend to hold very well.
[00:42] Enter here. To figure out where our take profit level will be, grab your fibonnaci retracement tool Mark from the liquidity grab to the recent high. Or this red zone. Set our stop loss below the recent low.
[00:58] Let the trade play out If you look closely
