Original subtitles

all right hello everyone hope you're

doing all right welcome back to this

video about fair value gaps so if you

were attending the live stream this past

Sunday we were touching a little bit on

how fair value gaps are creating a

narrative now obviously there is a

little bit more advanced but that live

stream is a great video to watch after

this one mainly the beginning of that

live stream is where we talk about

perfect apps that are creating a

narrative again I'm live streaming on

YouTube right here every Sunday at 8 30

a.m New York local time so put your

alerts on or either join the telegram

where I announce the live streams link

to the telegram is in the description

alright so without further Ado let's get

right into it so as you can see right

here we have a few steps to go over

first one being fvg FEG fair value Gap

second one busy slash civi busy buysite

imbalance cell side inefficiency

civi sell side imbalance beside

inefficiency BPR balanced price range

liquidity void and volume aim balance

all right so the first one being a fair

value Gap what actually is a fair value

Gap it is an imbalance that leaves

behind an inefficiency in the market the

market moves efficient so to deliver

fair value fair value Gap if we have an

imbalance on the buy side that means we

are having a cell site inefficiency to

deliver fair value we need to rebalance

that buy side imbalance and deliver sell

side inefficiency so what does a fair

value Gap look like a fair value Gap is

fairly simple right here you have one

candle right here you have the wick so

keep that in mind the top of that Wick

so this candle that top of that Wick

right here then we have 1 volcano that

is expending higher this is a bullish

fair value Gap then right here we have

another candle that closes once this

candle closes and it leaves behind only

a body of a candle without filling in

with Wicks then this creates a fair

value Gap so this right here

this box is a fair value Gap the fair

value Gap is located between two weeks

and it's a three candle formation always

so once this candle closed doesn't

matter whether it's up candle a down

candle once that candle closes that

third candle it creates a fair value Gap

now of course right here if we take a

look at this for example this isn't a

fair value Gap yes we have a body but

there is no space between the first Wick

and the second Wick there is no body in

between there's no Gap so if you move a

little bit further what do we have here

we have a new fair value Gap right

that is a verified Gap then right here

we also have a fair value Gap right here

you can see a verified Gap gets

rebalanced right here doesn't have to

come all the way to the top it can

already sting into it and then just go

lower it doesn't have to rebalance it

fully so you can probably see how price

is navigating towards these fair value

gaps all the time so right here verify

your Gap right here for if I get right

here for five Gap right here right here

price is constantly navigating towards

those fair value gaps so price is

constantly rebalancing it is rebalancing

inefficient price action and again right

there is no premise to how big a fair

value Gap should be this is also a

verified Gap this is also a fair value

Gap the smallest little verified I get

right here is also for very good even

smaller this is also a fair value Gap as

a long as the Wicks have a little body

between them

so right here there's a little body and

the Wicks aren't overlapping if this

Wick was a little bit to the downside

right like this for example and there

was no space in between

then this wouldn't be a fair value Gap

but now this is a fair value Gap all

right now if we move on to the second

one a busy and a city a busy buy side

imbalance so there's a imbalance on the

buy side what does that mean this right

here

is an imbalance on the buy side and

imbalance is the same as a fair value

Gap and then a cell site in efficiency

so there is no sell side delivery in

that buy side imbalance or they go hand

in hand when there is a bicep imbalance

there is automatically cell side

inefficiency

so sell side needs to be delivered right

there so right here buys that imbalance

cell site inefficiency here cell site

gets fulfilled so to make it even easier

a busy is a bullish fair value Gap and

you can make it easy right busy start

with a B so buy so bullish fair value

Gap CV starts with an S so sell so a

bearish fair value Gap busy bullish

forever Gap sebi bearish foreign sell

side imbalance buy side inefficiency so

for example right here cell site

imbalance cell site verify your Gap a

buy side inefficiency there is no price

action on the buy side so right here

that buy side inefficiency gets

fulfilled then the next thing a BPR a

balanced price range a BPR is too

overlapping fair value gaps so an

overlapping busy with a civi what does

that look like if we take a look right

here

this right here

is

a balanced price range and again all

these five things essentially four

because busy city is just a fair value

Gap these can all be used as point of

Interest or PD arrays that we can trade

off of and a BPR is only the overlapping

part of the two verify gaps so a bullish

for Value Gap and a bearish for so

if we take a look right here we have

another one right here only the

overlapping part is the part you would

select so for example right here

it is a little bit overlapping so that

is the only part you would select of

course keeping in mind there's also a

fair flag game right here there's also a

BPR right here these are just a nice

Confluence so that is a bprn overlapping

busy and a city or an overlapping city

with a busy now the fourth one is a

liquidity void the difference between a

fair value Gap and a liquidity void a

fair value Gap there has been one-sided

delivery meaning we have either a buy

side imbalance or a cell site imbalance

a liquidity void there was no buy side

nor a sell side imbalance so there was

no delivery of price action at all it is

a gap in the market it is a liquidity

void there was no price delivery at all

so for example this is something you

will see during news events heavy news

events so I'm talking about US dollar

fomc CPI NFP when these are high impact

news events sometimes happen they leave

behind a liquidity void on the lower

time frame but if we take a look right

here at the stocks stocks open up with a

gap most of the time because there's no

Trading right here the Mark is closed

when they open up they are leaving

behind a liquidity void so right here

this part where there is no price action

right here that is a liquidity void

price has a very strong tendency even

stronger than a fair value Gap what I

would say so trade back into this

liquidity void before continuing so

right here just another example on the

liquidity void this for example right

here this little Gap in price action

that is a liquidity void same for this

little Gap those are liquidity voice

there was no price delivery on both

sides of the market it just skipped a

few price points a few price ticks this

happens on Futures way more than on

Forex pairs now for the last one the

final one right here the fifth one a

volume imbalance a volume imbalance is

when there is a space between swing two

candles so for example

a candle should normally close right

here and then open and they should be

perfectly at the same price point right

well this doesn't always happen and

especially on future contracts so you

will see this less often in Forex more

so on Futures like es which is the

Futures contracts for the S P 500 and

right here if we take a look and take a

closer look this right here that is a

volume in balance

get right there there is a little bit of

space between this close and this open

of the candles so that right there would

be a volume imbalance so if we take a

look at the daily price action right

here we have a few volume imbalances

right you can see this one

right there and we could see this one

right there those are examples of volume

imbalances there is a little Gap right

here between the bodies of the candles

so this is a two candle formation and

not a three candle formation now again

all these things these five things

basically four because BC and for Value

Gap is the exact same thing these four

things are the best when they are

overlapping with another PD array that

we have already touched on then they are

the strongest and fair value gaps and

liquidity voice and volume imbalances

Etc they will tell you a story so if you

are interested in that then you can take

a look at the live stream especially in

the beginning of the live stream that's

where we touch on it alright I want to

thank you study this and study how they

form a narrative and I will see you at

the next video on Friday alright thank

you

thank you

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