Full transcript (1453 words)
I know you clicked on this video because you use IPGs as an entry model or you're planning on using them. That's why in today's video, I'm going to be showing you exactly why IPGs are never and can never be patched. For everyone who believes in alpha decay, this video is probably going to be for you. When you look at an inversion fair value gap, realistically, it is a green candle, okay, that goes up, we sweep some sort of high, and then a red candle that slices or nice back through it, okay? And the basis of the market moves like this. The basic was The basis of the market is if we get a giant green candle and then a giant red candle that engulfs this, which is called a bearish engulfing pattern, this is going to generally continue down and be bearish, okay? That's why this candlestick pattern is so strong. Now, let's say we add the concept of IPGs in here though, where we get an actual fair value gap. So, like maybe this, okay? Now, we have a spot or an imbalance that is very, very powerful to boost price up. And if it doesn't boost price up, it's now two times stronger of all these billions of orders that just caused these candles, billions and trillions of dollars of orders, all getting inverse with one candle here. And not only does this candle most likely engulf the green candles, but it also closes below this imbalance, which we know smart money is literally buying it, okay? And that is why like this can almost never fail if used properly because if the market were to do this and it were to not work anymore, essentially what would happen is we'd get the green candles with billions of dollars of buy positions, okay, where we'd be like, "Oh, buy, buy, buy, buy." We get a red candle, all these buyers now are stopping out because now they're down trillions or millions of dollars. So, they're stopping out here, but when they stop out, they physically have to sell. So, they have to sell. So, it will cause price to be selling imbalance of them selling those billions of dollars of shares or contracts or whatever they're in, it will have to cause price to go down. So, this not working constantly just just not make sense because if they're selling, it just doesn't make sense to get candles that are going to go back up like this because if they're selling, then how in the world would we get a candle like this? The only way you would is if somehow they didn't sell. But, theoretically, if there's a giant death candle and it goes through and balance and it's already stopped me out or, you know, changing reversals of all this orders, you know, these people are going to get out of the position. Okay, and I'm not talking about people, I'm talking about algorithms. Algorithms are going to be forced to sell here, okay? Same thing on the other side. Okay, let me explain it from the other way, okay? For the other way, right? If there's billions of dollars selling here, here, and here, okay? And then all of a sudden we get a giant, you know, two green candles of millions of dollars trying to stop out these sellers, what are these guys going to do? They're going to have to buy back. If they're buying back, does it make sense to for us to get a candle all the way back down here? Like this? No, it doesn't. That's just theoretically impossible. Of course, this does happen sometimes, but that usually means your draw on liquidity is wrong, okay? But, if your narrative's correct, you have a good draw on liquidity, and you know, like, okay, there's like equal highs or something up there. When these sellers or when these billions of dollars are selling their position, these people are going to be forced to buy back. And what are buy stops? They're buy positions. So, that's where we cause these squeezes, and it's just going to be so hard for the market to push back down here cuz there's going to be an imbalance of buyers to sellers here, and buyers are just going to push or the algorithms are just going to push price up, okay? Once you understand this, you will understand why FVG's are so accurate and why they really can't be passed. Okay, so what we're going to do here is we're going to open up FX Replay, we're going to go to a session from 2012. Okay, I'm just going to go to random day, 2012. That is 14 years ago, okay? 14 years ago, crazy, honestly. Okay, so we are in an example in 2012, okay? Just a random example, um and to me, it looks like if we go to the 4-hour chart, you know, we're delivering from It looks like we're kind of holding this kind of area. I'm sure it's like a daily or weekly gap, maybe. If it's a circle of a daily here, I can't do that. But, I'm sure this is like a daily gap or something. Yeah, you can see it's a daily gap. But, the example I'm trying to show you is this, right? There are billions and billions of positions or algorithms shorting this candle, okay? Now, it causes a fair value gap or an imbalance. Now, the second we start to squeeze back over these orders here, they're probably thinking, "Oh, Like, this like is horrible. Like, this is so bullish." So now, these people right here are being forced to buy back to position here, which is going to cause price to overall squeeze back up, okay? So, again, I could be wrong, but statistically, if you were to think like that for the next 10 years, it's going to be very hard for a signature and price like this to fail, okay? So, let's see what happens. And then boom, we just go way up here. Look at that. So, at that point, right? You would You would have probably longed there, and I'd honestly even target higher here, okay? But, you got to realize like these Those sellers are being forced out of their positions there, and it just causes price to go up. Now, we end up going down eventually, but you can see like how much these sellers have to buy back, even buy back again, buy back again. And we're moving so far out the zone, okay? So, now, if we got like maybe a big candle over this, you know, we probably go back to the all-time high, but unless we got a big candle over that, then we won't. Yeah, no big candle there. So, yeah, it's just kind of interesting to watch and see how the market really moves. Okay, boom, look at that. So, there's a pretty big ass candle there. We just inverse this gap. Like, I'd probably think, you know, sellers are probably like, "Oh, Like, I'm going to buy back there." Yep, look at that. See how well we move up above that support level, right? When we inverse that with that big candle, they're probably like, "Oh, Like, that's bad." And then again, I'd probably target the high up there. Yeah, boom, there it is. Uh and the reason I target the high is because all this L R L R right there, this trend line liquidity, but uh yeah, so that is why IV G's really can't be patched. So, that's going to be it for this video. I really hope this kind of open up your eyes and made you realize like if you are just getting the IV G's, it's not going to be patched. Okay, don't just move to something else thinking, "Oh, but too many people are using it." But again, I showed you why it can't be patched. Don't forget to use code Dodgy for all your favorite prop firms. I think Apex is the best if you're broke, Lues is the best if you're getting some payouts, TBT's the best live program, Apex is the final boss for 20 counts if you're really good trader, and Trade the Five for instant funding. There's so many other firms out there though, guys. Use code Dodgy. I'll see you guys in the next one. Peace. If I've helped you literally anyway, using code Dodgy does help me a lot, so yeah, it's pretty much like, "Huh, have a good weekend, week, God bless, and peace."