Low-Probability Days: Finding A+ Trades With FVGs (Live Trading Room)

You know, yesterday was a day where it was low-probability conditions, and the biggest thing when you trade is that you have to make sure you take out some level and trade into a key spot. That has to be a pivot higher low or a higher-time-frame internal fair value gap. Okay. The other ones that we use are session liquidity, like London lows, London highs, Asia highs, and Asia lows. And as a point of yesterday, we had moves right off London highs and Asia lows. Okay?

And when we look for those, we’re looking for our model to present itself. Okay? Because the model is going to let us know whether we’re going to trade or not. Now, this one I described yesterday, there was no inverse fair value gap because of liquidity, but we did have an order block move up here and an inverse above. Okay. The one on the way down was a five-minute inverse fair value gap, where we took out London highs and we had a manipulation lower to the downside.

Yesterday was very choppy conditions, and then later on in the day we take out liquidity, right, we take out liquidity. We are delivering from a one-hour fair value gap, right, a one-hour fair value gap delivering from. We took out the high inside that one-hour fair value gap, and then we had an inverse fair value gap off of that to the downside with SMT. So only take trades when we are delivering from a higher-time-frame fair value gap or an external liquidity point and look for our model at those points. Don’t get caught up in between.

That’s why I don’t love this trade right here, because we didn’t take out any liquidity. We did on the ES, but it was very choppy, so that’s why I decided not to get involved. But this is a better trade because we’re delivering from a higher-time-frame fair value gap. We have SMT, we have a manipulation of internal liquidity, and we have an immediate down move at an inverse of that displacement, showing that this was manipulation.

Now, later on in the day, when things started to move lower and we took off of that, now we’re delivering from a one-hour fair value gap. And what did we do on the 15-minute? We displaced, right, we displaced. So now, if we’re going to continue lower, we want to look at this fair value gap right here to continue lower from. Okay. So whenever we tap into a 15-minute, what are we looking for now? Swappy, what are we looking for? If we want to tap into a 15-minute fair value gap and look for a continuation lower, this goes back to what we were just talking about on a trade like this.

I know if this is defended and I get short here, I know where my target is. It’s external liquidity, because that’s inherent. So I can frame a trade from entry to target. Okay. Now, what needs to happen inside here? What’s our model? We need to deliver from a higher-time-frame fair value gap. Well, we’re already delivering from the hour. We already inversed it and are on the way down. Now, on the way down, we created a 15-minute fair value gap displacement, a bearish one. So when price comes back into it, we want to see how it reacts. Okay?

And if you notice, we get an SMT right at the 15-minute fair value gap, exactly what we want to see. So let’s go down to the one-minute chart. Okay, we are now on the one-minute chart, and what are we looking for? We’re looking for an inverse fair value gap out of this higher-time-frame fair value gap to confirm the SMT, which we get right here. Right, your entry is going to be right here on the close. Good momentum. Our stop is going to be right above that fair value gap, and just to go to the 15-minute, our target is going to be that external liquidity level that we talked about, internal to external. Okay. And that is over a 7-to-1 risk-to-reward trade.

Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm funded traders every day, then click the link below the video and hop aboard. We’re looking forward to trading with you.