Wellcome back bois and girls. Price didn't even stopped for a bit during holidays woah. Let's get aligned with it, shall we?
I have outlined 3 fair value gaps on the chart:
- on the top, marked with "mbpr" is a monthly balanced price range. Meaning that on the monthly chart price have created a bullish fair value gap to the upside, but didn't followed through the momentum and created a bearish gap to the downside. It is basically a bullish imbalance overtaken by a bearish imbalance.
Why is it important to us? Well it's a range that could indicate price behavior. A higher timeframe (monthly) invalidation range, if you will. If price closes above this mbpr on a monthly chart, than it is a sign for bullish continuation.
-on the low we have a weekly fair value gap. It's important because it overlaps with a bigger, monthly fair value gap. So at least we should have a small reaction from it right? See the body closure above the 50% of the gap? That indicates that price will seek an opposing PD array. From a bullish gap to a bearish gap. This is when the third gap becomes relevant.
-The third gap is in the middle, where we had the most recent reaction from. Price even tapped a weekly bearish order block when pushed higher to rebalance. A reaction from it, is highly possible. If we see this rebalancing move, as an internal range liquidity grab (in fact it is on the lower timeframe), than we can anticipate an external range liquidity run afterwards .
The two main target is outlined on the chart, as well the invalidation line too. If price closes above the 50% of the weekly gap in the middle, than I reconsider the bias. I also take into consideration that we could be in a deep discount range. I will also look for lower timeframe confirmations either supporting my idea for a decline, or for an upside move.
Ok see you byyyy
I have outlined 3 fair value gaps on the chart:
- on the top, marked with "mbpr" is a monthly balanced price range. Meaning that on the monthly chart price have created a bullish fair value gap to the upside, but didn't followed through the momentum and created a bearish gap to the downside. It is basically a bullish imbalance overtaken by a bearish imbalance.
Why is it important to us? Well it's a range that could indicate price behavior. A higher timeframe (monthly) invalidation range, if you will. If price closes above this mbpr on a monthly chart, than it is a sign for bullish continuation.
-on the low we have a weekly fair value gap. It's important because it overlaps with a bigger, monthly fair value gap. So at least we should have a small reaction from it right? See the body closure above the 50% of the gap? That indicates that price will seek an opposing PD array. From a bullish gap to a bearish gap. This is when the third gap becomes relevant.
-The third gap is in the middle, where we had the most recent reaction from. Price even tapped a weekly bearish order block when pushed higher to rebalance. A reaction from it, is highly possible. If we see this rebalancing move, as an internal range liquidity grab (in fact it is on the lower timeframe), than we can anticipate an external range liquidity run afterwards .
The two main target is outlined on the chart, as well the invalidation line too. If price closes above the 50% of the weekly gap in the middle, than I reconsider the bias. I also take into consideration that we could be in a deep discount range. I will also look for lower timeframe confirmations either supporting my idea for a decline, or for an upside move.
Ok see you byyyy