What is FAIR VALUE GAP & Inverse FVG ?

Fair value gap is a concept in the trading industry... ...which has been heard by a lot of people. They have a basic idea but don't know how to use it. So in today's video. I will tell you how is the fair value gap and inverse fair value gap. There are a lot of them but how to spot the best one. I will show you a real example where you can use it and make 12 lakh rupees. After that, I am making this video for you because I had put shots of it. So let's start this video. So first of all, let's understand what is this fair value gap. So fair value gap or inverse fair value gap. When we understand FVG we will understand inverse FVG. Fair value gap is it tells an imbalance. What is the meaning of imbalance? If there is imbalance in buyers and sellers... ...if there is a big buying, then it is called imbalance. For example, a green candle is made here. After that, a very big green candle is made. Okay? And after that, if there is a small wick, then there is no wick. So the next candle is a red or green but let's make a red, for example. So such a candle is made. So whenever we get a structure like this... ...where the middle body is very big, body, not wick. A long candle can also be in the wick but we are talking about the body. We will understand the time frame. So whenever I call this candle number 1... ...I call this candle number 2, I call this candle number 3... ...so between 1 and 3, 2, 2 candles are main. Now the distance between 1's top and 3's bottom... ...1's high and 3's low if i make a gap here like this... ...then this will be called a fair value gap. Many of you might know this those who didn't know, got to know. This is called a fair value gap. Why is it called? Because after this candle such a big candle was made here. It means that there is institutional money here. There is an involvement of smart money here. That is, of big traders. If someone is buying in gold, bitcoin, or in any nifty... ...if such a big buying is coming... ...then a retail trader can't pick up such a big market. So this level here means people have a lot of interest in this. So this gap is an imbalance. So how do we trade this? We will come to that point. Okay. Now before that, let's understand how a negative side will be made. A fair value gap. Suppose a red candle is made after that a very big red candle is made. Okay. After that, a green candle is made. Suppose a hammer is made. So how will a fair value gap be made here? We will say it again, we will mark it. This will be called 1. This will be called 2. And this will be called 3. The difference between 1 and 3, like we drew a line from here, and its height. So this area will be our fair value gap. Okay. So I have told you the basics of what a fair value gap is. Now we will go to the next level. And we will understand that in a fair value gap... ...we have to learn to draw one more level. And the level that we have to learn to draw is 50%. This is also going to be useful for us. Okay. So you will learn to draw a level of 50% which is shown by a center. And we will learn about premium and discount later. So we understood the fair value gap. Okay. So how do we use it? So how do we use it guys? Let's take an example. Suppose a green candle is made in the market. Okay. A green candle is made. After that, a very big body green candle is made here. After this, the market made a red candle. For example, like this. So where will the fair value gap be made here? Here, the fair value gap will be made in this area. In this area. Okay. And what did I do? I made a middle line here for you. Now what do we have to trade? Now the concept of the market says... ...the concept of the market says, the concept of the fair value gap says... ...that the market will definitely come to fill this gap. Now it will fill the whole, It will fill 50%, it will tell the price action. Which we will see in the examples. Sometimes it will come up to this level, Sometimes it will come up to this level. If we get a bullish candle on both the levels... ...then we have to make it long here. This is the concept of the fair value gap. Means, if the next candle is made green here... ...sometimes we think that the stop loss will be set. If you enter such a big candle, Where will you keep the stop loss? You won't keep such a big stop loss. So we wait that the market makes one more red candle. Makes one more red candle. And if it makes some action like this somewhere here... ...so this is a very good entry for us. We get a very good long entry here. So this is the concept guys. We have to buy here at this point. And after buying at this point, We have to capture a long trade like this. We get a small stop loss. Target is also 1 is to 3, 1 is to 2 or 1 is to 4... ...Depending on the resistance level here. This is the example of the bullish fair value gap. Now I will give this example. And when it fails, Then there is an inverted fair value gap. For that, stay tuned. And let's understand now. First let's understand a bearish example. Assume that a candle like this is made in the market. It falls. And always remember there will be many fair value gaps. In fact, there is an indicator to calculate Fiji. But it calculates everywhere. That's why I will tell you, If you trade on a big candle fair value gap everywhere... ...then only we will get a good result for us. I will show you a live example there is no problem. So what will be the fair value gap here? This and this. Where will the middle point be made? This will be the middle point. How does it scale on the trading view? I will show you on the trading view. We will make it by using the scale. So now our concept is that if I will make a short here... ...On this candle, Assume that a red candle is made. I will not keep such a big stop loss. So here the risk-reward goes bad. That I have to get the target up to here. Stop loss is so big. To improve that risk-reward... ...many times it will happen that it will fall directly. No problem, regret. At least your money will not be lost. Learn to leave such direct breakouts. If it falls. But if the market makes a big green candle here, People's. It makes another big green candle. It makes another big green candle. But while coming here by touching X... ...for example, It makes such a red candle. So this is the shorting point for me. This will be my short entry. Here I have to make a sell entry. Or basically, I have to make a short sell entry. I will get a small stop loss. And I will get a big target. So this is my goal. So this is how the fair value gap works. Okay, so I explained this concept to you on the iPad. I will also take it on the screen. And I will give you all the examples one by one. Before we go to examples and directly go to trading view... ...Let's learn what is inverse fair value gap. You have seen what is FVG. Now after FVG, We will understand what is inverse fair value gap. Because whenever you take a trade of FVG, And it fails. Okay, if it fails, Then you can also take a trade of inverse FVG. By the way, It will not fail many times. You will also get a trade of inverse FVG directly. Because it will be mitigated directly. Your gap will be filled directly. Basically, It will be violated in short. There are many English words. The meaning is very simple. We will understand. Now let's understand a bullish example. First of all, we saw that A small green candle is made. Means a big green candle is made. And only if a big green candle is made Our attention will not be focused. So see, FVG is also made like this. There was a candle like this. Then a candle like this was made. Then a candle like this was made. So here also FVG is made. But these examples do not work that well. Your first and third candles should be small. And the second candle in the middle should be very big. If you start applying a small quality difference... ...Because indicators are available on the trading view. There are free and paid ones. They are holding all the FVG. And you are trading it and making a loss. So if you feel that this thing does not work, The video is not useful. So see it completely. And after telling the whole concept, Apply it. You will enjoy it a lot. Let's move ahead. Suppose the next candle is made green. But it is made small. So where will the fair value gap be made? It will be made here. Now the market says take out 50% of it. Now the market says, Okay I will explain the 50% rule. What happens? Now the market, Fair value gap, This is not an example of inverse fair value gap. When the market comes down in the fair value gap... ...then the upper area, Okay, the market moves from here too. But when the market moves from this area. Okay, Then it is considered a very good area. Because the stop loss is very small. Because if you make an entry here... ...then also the stop loss will have to be kept down. So that's why they split the area. At the lower level, Entries are called quality entries. Upper entries are called low quality. You can use the word premium and discount. Okay, Let's come back to the concept of inverse fair value gap. Now what does the market say? Now we are expecting that the market will come down. Will make a red candle. And where the green candle will be made, We will take the trade. But the market, Breaks it. So the concept has failed here. And look, The best thing is that there is no long entry. Because when the green candle is made... ...you will get a proper closing. On a 5-minute time frame if there is an intraday... ...if you want to hold a little longer then there is a 15-minute time frame. If you want to hold the trade for 4-5 days in an hour... ...if you want to finish your trade in half an hour, in an hour... ...so I told you the time frame. So, If this breaks, So what happens here, People close their laptops and forget. But if you check this carefully, so, what happens is, Don't delete your levels. Neither delete the centerline nor delete this fair value gap. Even if it has broken. Now if the market comes to this area... ...on a green candle do you remember the retest concept? What did the market do? It broke out up, But it failed. Came down, And fell like this. So, We are trying to find this trade. Basically, You will understand this trade. In the live example you will understand it very well. So, We have to wait if it makes a green candle... ...if it makes another green candle and here somewhere... ...we were basically looking for a long trade. Correct? We were finding a long trade. Now, We are finding a short trade. And now, I get a candle like this. So guys, This is an advanced concept. You put a sell here. Put a small stop loss. Put a big target. And this is the inverse fair value gap. If you understand one more example... ...then you will understand the sell side. See, Market fell down. Big fell down. Big fell down. We know that we are looking for a sell entry. We made a fair value gap. Made a middle line too. So, We know the premium discount. So, We get a better trade from this side. Small stop loss. Low quality. If you want you can leave this area trade. You can catch them. You can do this too. That's why we are making a middle line. So, We will come here. And, I am sorry guys... ...I am making a long video for you after a long time. But I am in a full mood. I am in a mood to make a playlist. Should I make a playlist of forex? Should I make a playlist of crypto? Or, Should I make a playlist of stock market? Do tell me in the comments. I mean, I will make 25-30 videos at a time. And I will give you my complete list. Thank you for being my subscriber. If you are new, then subscribe. Strong content is going to come. Let's come back to work. Now, Let's guess. Which trade are we looking for? Sell or buy? First, We don't know. It will be inverse FVG or FVG. So, Obviously, we are trying to trade a fair value gap. We are planning to sell. So, We were planning to sell. It fell down. It came. We hope that One red candle. Boom. Something like this happened. So, Now, What do people do here? They close the laptop and leave. But, There is a chance of Inverse Fair Value Gap. Now, If the market comes here and makes a red candle. Here, An entry like this will remain green. And this. So, This will be my entry point. Guys, I have to make my entry here. I have to put a stop loss at this level. And I have to make a target of a big level. 1 is 2. Obviously, It looks small. But, The target will be up. Or, You can put your stop loss at this candle. Because, The market usually doesn't break it again. So, Actually, The right stop loss will come here. Below this red candle. And this will be your big target. Okay? So, I hope you enjoyed studying Inverse Fair Value Gap. And, What is Fair Value Gap? And, Where do we apply it? All these concepts work in all markets. Now, I will take you to the laptop. The thing that works the most is Forex market... ...International market, Gold, Crypto, and Crude Oil. To trade all of them, I will suggest you the right broker is XNESS. Which I personally use. You will get the link in my profile. You will get a lot of benefits from opening my link. First, You get help in withdrawal deposit. Easily, Legally, Your money gets deposited and withdrawn. Second, I have made an app called Market Genius. Where I develop trades for free. You get access to that. Now, You will automatically know all those things by coming to my Telegram channel. So, Open your account from Texas first. And install Market Genius. After that, you will automatically know all these things. Now, We will go to my laptop screen. First of all, we can see our Ethereum chart. This is 1 hour time frame. You can develop this in 1 hour. I will show you in 1 hour. I will show you in 15 hours. I will show you in 5 hours. Here, you can see where is the big candle and where is the gap. So, I think the best gap is like here and here... ...and here and here and i will example to you. First example, see this which is made by this candle. When this candle was made there is a big gap in it. So, there should be a gap. The middle body should be big. Here, I came here and I made the height of this candle. All right? Like this, this is candle number 1, this is 2 this is 3. I pulled this forward. So, when I pulled this forward. I went to the market and made such a big entry... ...entry i don't know where i will put the stop-loss... ...and if i would have entered then my stop-loss would have hit. So i deliberately waited to come inside this level of the market. Now what did i say? How to pull 50%? Look at this. What did I say? Come like this. Come here and put a line of 50%. What will be the benefit of putting a line? You will be safe from cheap trades. I mean, until the market moves from here you can avoid it. And when it moves from inside then you can enter. Like the market came from here inside only but there was no closing outside. Then what did the market do? Perfect touch and then if we enter here then what did I say? My goal was after touching below this 50%... ...if we enter here put a stop-loss... ...this is a simple fair value example of ours. Here and we know that the market has given us a run up to here last time. So we will pull it. So we will get 1 is to 3.32. look now I will tell you a secret. Why does it happen that while booking a target, Your market reverses? Because everyone can see this. I can see it, you can see it, everyone can see it. So you will deliberately make your target a little small. 1 is to 3.4, not 1 is to 3.12. So we have to book this trade in this way. Okay, now I will show you more examples of fair value gap. I will show you 2-3 more. Then I will show you examples of inverse fair value gap. And if you like the video then like it. If you like it, I will give a target of 5,000 likes. Whichever list has the most comments for a crypto stock market... ...i will start putting that video. If I make it, then 3 rounds. But what will i put first? I will put it immediately after 5,000 likes. Alright guys, so this is a chart of USDJPY. The market is giving a good downtrend. And anywhere like here there is a fair value gap, But the market didn't come. But I saw that 1, 2, 3. Here, there is a fair value gap. Okay, the middle candle should be big. Okay, the middle candle should be big. The middle candle is big. And this is also a big candle, but okay. I mean, there should be a gap. There should be a good gap. So we saw that from this candle i will pull the gap of this candle. I will pull it further. So now what you are seeing is a 15-minute time frame. Okay, now what I will do here? I made a gap. I will pull 50% too, so that i get the quality. This is the biggest mistake you make here. Follow this 50% rule. Your quality will increase. Now I am shifting it to 5 minutes. Why? Because I have to exit early. I could have done this. I could have entered the 1-hour one at 15. Let's come back. And where is the level that we drew? This is our level. So if we see that the market here such a lovely trade. Look, we are getting a trade here too. First of all, the entry. I will deal with you genuinely. Obviously, this will also be a trade. This will be the first trade. So I genuinely have to do my stop loss. What do I have to do? This is my gap. Now look, Now your stop loss hits and you are targeted. Why does this happen? Why does this happen? Because you can see that this is my box. I will put it here. It hit. Don't be stingy. Like I said in the target. Exit early. Put a big stop loss. Don't be stingy here. Be stingy in the target. Don't be stingy with the stop loss. Like this. Okay. We know that the market has given a run up to here. Correct. So what will we do? The same thing. Will we take the target up to here? No. A little up. Like this. So if we see here what does the market do to us here? It gives a target of 1 is to 3.7. Now I will teach you a thing called Pyramiding. What is the concept of Pyramiding? What do we always do? When we go into loss we start increasing our quantity. This is the biggest thing. When we are in red we should not increase the quantity. This is called averaging. After doing this, Many people are in loss. It has become a habit. There is a loss. Increase the quantity. This is called averaging. Which is a very negative thing. And a losing strategy. But if you do Pyramiding. What does Pyramiding mean? Now what happens? We made a trade. We made a short. It started going in our favour. Good. The market turned again. And gave us another opportunity. Okay? Gave us another opportunity. So see, when the market touched this level again. Somewhere here. Where does a good red candle appear? It appears here. I will move this aside. What do I see in a good red candle? It appears here. Hold this point. Or hold this point. Or hold this point. Okay, I will hold this one. I will hold this one. Okay, at this point. If we take an entry at this point too. Then even though we increased our quantity. So what we will do? We have already made a trade. And we activated another trade here. And booked a double target like this. So 1 is to 7.2 in one. 1 is to 3.8 in another. In total, we did 1 is to 3. In double quantity. The risk is very low. So like this, Not averaging. We can make our money by Pyramiding. What did we do? We made FVG at 15. We saw it at 5. And what did I do? Again and again. I let it come in a good zone. Okay? I let it come in a good zone here. If it is a sell trade then i will if it is FVG... ...if it is a sell trade then i will want to sell above 50% here. Not here. If it is a buy trade, In FVG, Then I will want to buy it here. Not here. This was a small new addition for you guys. If you follow it which is called premium or discount. Then it will be very useful for you. Now I will take you to the gold chart. Where I took a live trade. And I will show you. This trade this trade made me $13,000. I will show that too. See, what happens here guys in 5 minutes see i made a shot of this video. There are a lot of comments on this video. So I am making a video. See, it is such a big candle guys. If I see the candle Bro 0.42% is a $12 candle. Now what am I doing? I am just showing you a small story. Whenever you get such a big candle that before this it is bigger than 236 candles. Towards the bottom. Now it is obvious that i will take a shot here. I will take a shot here. Will I keep such a big stop-loss? Bro, my account will be blown. I will keep such a big stop-loss. Fortunately, it worked. But what if it doesn't work? So there is no point of risk management here. So what do we have to do? We have to wait. What to do? Come simple. Develop a fair value gap here. This is my first point. This is my second point. I made it. Draw a line of 50%. And make a rule. That if the market comes above this level and gives a trade... ...this is my sell zone over here. And here i get a good entry near that level. And here I get an entry. Put a stop-loss on this candle or on this zone. No problem. See how far the market has fallen. It has fallen till here. It has fallen till here. So what do you do? You cut it till here. So here, My risk reward was actually 1 is to 4. Because I kept a small stop-loss. Now I can keep it according to the stop-loss situation. And the target was small. So mine was 1 is to 4. If you come here quickly. If you come here we have two supply zones for sell opportunity. It will give a bearish candle. I have a gold chart here. I have made a proper zone for you guys. I have told you that starting off with sell trade. I have told you that the first target is done. We will try for 1 is to 4. And I have booked 100 whips. But still I have told you that we will hold them. It is dropping. I have held 1 is to 4. And you can see that i have booked 13,000 dollars. And not just me, 25,000 people have also seen this trade. It is a free of cost channel. It has 1,25,000 followers. So definitely join it. You will get a lot of benefit. Plus, you need Market Genius app etc. You need withdrawal services. I have given the link in the account. You can open your account. Now let's see an example of inverse fair value gap. Alright guys now i will show you an example. You can see a big red candle here. I have come here in gold. And here simply an inverse fair value. I am trying to make a fair value gap. I want to sell. Okay. I came. I took out my 50%. I drew a line of 50%. When it will give a red candle above this line i will sell. What did I see? It broke. What do people usually do? They leave it. They close the laptop. What do we have to do? We have to wait. If the market a green candle. Cheap entry. I said above 50% Cheap entry. Stop loss is more in this. And I am showing you an example. Obviously, It won't do all the work. It will work like 5 times, 6 times, 7 times at a good time. But 10 times, Nothing works. So keep this in mind. When we will back test this, Trust me. Watch this video now. Make notes. Check yourself. You will know what i am telling you. Below 50%, this is a proper enter from a good place. Dip and enter. Here. Make your entry long. Stop loss will tell you clearly. This is the point. You will put it on this point. Then put it down a little. Target, Till where has the market gone? Till here. Before this i always prefer body. You must have seen it. I prefer body. Body works better than wig. Anyways, If you have any doubt, Comment and ask. Now the world knows that the market will go till here. Look, It fell from there. I deliberately made the first target. I will make such a target. So if you see this is a very beautiful trade. Here, Like this. It will develop in 5 minutes. It won't work on 15. It will develop in proper 5 minutes. In 5 minutes i will get the entry early. I won't get the entry. Entry is heavy. Still, It will be here. Look, Such a beautiful trade. 1 is to 2.6. What happened? Breakout. Fair value gap. We were looking for the sell. I didn't get the sell. I directly Breakout. I went inside Touched the 50% line. I entered. If it would have touched here it would have been more beautiful. And 70% 75% win rate. Let's see more examples. Alright guys, Again, It's a gold chart. In fact, today was 17th January. I am making a video on 17th. So, In that, we see that a market opens with a gap up. It fills the gap. But makes a new fair value gap. So, I make a fair value gap here. Now, What is my mind here? You tell me. I am looking for a sell trade here. I will black this first. What am I doing here? I am looking for a sell trade. Because Obviously the market has broken down. Now, It will give me a good sell trade. Okay. So, What I have to do is i have to make 50% here. And, I got a good quality sell trade. Where did I get it? I got it here. I have to short it here. As soon as I short it so what happens here? This is the example i was telling you. Sometimes, There are SLs. They get punctured and leave it. But, See, What happened now? See, What happened here? It is in front of you. Here, and i will shift it to 5 minutes. So, You will understand easily. Now, It has taken a stop loss. Now, I had sold on the red candle. On this candle. And, I had put a stop loss. I got a hit here. Stop loss. So, Book the loss here. Now see the market has broken it. People will delete it. But, If you see today in the morning at 12 noon it gave me a perfect entry. Although i didn't give it from my 50% zone. But, It gave me an entry from here. And, We can enter here. And, We can put a stop loss. We can put it below 50%. See this is also a wick. Put it below a little. And you will see the market came till here. Leave a little earlier. So you get a trade of 1-2 points. Okay, This is a trade which maybe i should avoid. Because, It is made from a higher level. Let's see more examples. Alright guys this is a chart of USCJPY. After seeing such a big bull run i thought... ...before giving this bull run it gave me a signal that i can catch a bull run. So, See, I am a teacher. My job is to show all the examples. Whether to buy or not i have told you. The box below the trade below 50% is better. Whether to buy or not you will do all the backtest. So, Do the backtest. So, I gave all the examples. See this was such a big bull run. Can i catch it? See there is a red candle here. There is a fair value gap here. Okay, I was planning to sell. So, See, What happened here? Again you will see the same thing. We made a fair value gap. We made a short position here. We did a short of 50%. Then our stop loss hit. Okay, Now if the stop loss hits we get irritated. But, Accept it. And, Move on. And Wait. Mitigate. The break happened. The market came. Above the red candle see what a green candle we made. We will not enter on the red. What did it do? It grabbed all the liquidity. Meaning it went to the lower level. What does it mean to sell? It ran up. We will make our entry on this candle. Long. Now, We all can see that the stop loss... ...we can see that the market Is at this point. Set it down a little. Did the market go up before this? No, it didn't. Okay, it went. Where did it go? Body. This is my body. It went till here. I will come here. And if you see my target, Okay, 1 is to 1.2. So i will not accept it. Whenever it is below 1 is to 1.5, leave the trade. Or see what can be the next target? The next target is this body part. It can be this one. Until we don't get the risk-reward above 1 is to 1.5 this is it. I will exit a little earlier. Now, let's see what the risk-reward is. So, this is how you trade, guys. So, 1 is to 2.5 so, see we achieved such a big bull run. So, i will revise the inverse fair value gap. Okay, What is the market doing? The market went down. Our job is to sell it. As a fair value gap. But, what does the market do? It breaks it up. So here if it is 50% we try to catch this trade. This is called the inverse fair value gap. So, i hope you enjoyed watching the video. And, You must have learnt a lot. Now, your job is to after this video you have to back-test it. Make notes. Set things according to yourself. And whatever you understand like... ...i told you to pick up the trade from below 50% long. And, to hit the sellers from above. If you check this thing in back-testing whose win-rate is better? Then, it will be useful for you. If you are new, then subscribe. Because i have uploaded a video for you after a long time. But, I will make a series. Along with that right now i am giving you live market guidance on Telegram. So, I hope you have joined it. Otherwise, the link is given. And from the month of March i will come live for you. 2-3 times a week. Then i will give you live guidance. So, make sure to subscribe. And, press the notification bell icon. Rest, you will like it. As soon as 5000 likes are crossed on this video i will put a playlist for you. Okay? Let's meet in some other video. Thank you so much. Bye-bye.