The 2 Tactics Pro Traders Use
45sImmediately hooks traders with a promise of insider tactics and reveals the core strategy of liquidity and fair value gaps.
▶ Play ClipAI Summary
This video presents a professional trading strategy that combines liquidity and fair value gaps (FVGs) to identify high-probability entry points. The core concept is that liquidity acts as a price target, while fair value gaps serve as entry zones, with a specific focus on inversion fair value gaps as a bullish signal.
Chapters
[00:00]
Core Strategy: Liquidity + FVG
The strategy uses two tactics: liquidity, which is what price targets, and fair value gaps, which are where entries are placed. This combination is presented as a highly effective approach.
[00:15]
Identifying Fair Value Gaps
When price makes a draw on liquidity, it creates a fair value gap. In the example, a bearish fair value gap is formed during a downside break of structure, which most traders would misinterpret.
[00:31]
Inversion Fair Value Gap
The presenter never enters a short on a bearish fair value gap. Instead, they wait for price to close above the gap, which is called an inversion fair value gap and is an extremely bullish signal.
[00:43]
Trade Execution
Once the candle closes above the gap, the trade is taken, with profit targets set at points of liquidity. The video shows the trade playing out to demonstrate the strategy.
The video teaches a specific trading methodology where liquidity determines targets and fair value gaps determine entries, with inversion fair value gaps acting as a powerful bullish trigger. This approach aims to provide a systematic way to trade market structure.
Tutorial Checklist
Study Flashcards (6)
What are the two tactics used for entry in this trading strategy?
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What are the two tactics used for entry in this trading strategy?
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Liquidity and fair value gaps.
What is the role of liquidity in this strategy?
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What is the role of liquidity in this strategy?
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Liquidity is what the price targets.
What is the role of fair value gaps in this strategy?
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What is the role of fair value gaps in this strategy?
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Fair value gaps are where you enter the trade.
What is an inversion fair value gap?
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What is an inversion fair value gap?
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It occurs when price closes above a bearish fair value gap, turning it into a bullish signal.
00:31
What is the signal to enter a trade in this strategy?
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What is the signal to enter a trade in this strategy?
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A candle closing above the fair value gap.
00:43
Where are profit targets set in this strategy?
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Where are profit targets set in this strategy?
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At points of liquidity.
00:43
💡 Key Takeaways
⚖️
Liquidity and FVG as Core Tactics
Establishes the foundational principle that liquidity targets and FVGs are entry zones, which is a key insight for traders.
🔧
Inversion FVG as Bullish Signal
Introduces a specific, actionable pattern (inversion FVG) that is a powerful bullish signal, adding practical value.
00:31
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Execution and Profit Targeting
Provides clear entry and exit rules, making the strategy executable and testable.
00:43Full Transcript
[00:00] because of how well it works. We will be using 2 tactics for our entry. liquidity and fair value gaps. Liquidity is what the price targets. And fair value gaps is where you enter. For example, most traders would think this
[00:15] is a break of structure to the downside. But Being the professional traders we are, happening while doing so. While making this draw on liquidity, price created a fair value gap. Not only that, but it s a bearish fair value gap.
[00:31] But what if I told you, I never enter a short on bearish fair value gaps? But instead of entering a short when price hits this fair value gap, we will wait for price to
[00:43] close above this fair value gap like this. This is called an inversion fair value gap and is an extremely bullish signal. Once the candle closes above the gap. profit at the points of liquidity. Watch the trade play out.
