This is exactly how I caught this low. You're welcome.
The concepts are simple. It has to be this way, so you can focus on the right levels. My charts are clean because I only focus on the highest probable levels. Imagine if I had every 4h order block and fair value gap on my chart. It would have been a mess, and probably I wouldn't have been able to call this move beforehand.
Would you believe me if I told you I only used 2 fair value gaps to call it on the 4h chart?
Everything that I do is origins from a higher timeframe fair value gap. What you can see on my chart is a Weekly fair value gap and a Daily fair value gap. That's all. The colored lines are "just" the bottom of these gaps. I tell you why it is more than enough.
You know what a high probability bullish order block is? It is a down close candle before an aggressive move up. What is an aggressive move up? A displacement in price. A displacement can be identified with a fair value gap inside the leg. This exact weekly fair value gap on my chart has a low marked up right? You know what's that low called? A high probability order block on the weekly chart. So we have one important range on our chart so far.
We have to know that price tends to rebalance these gaps, created on the higher timeframe. So it was a draw on liquidity for me in the first place. A magnet to price. The first idea was that price will touch into this weekly gap. It was based on the fact that the daily chart formed a bearish fair value gap, after taking buy-side liquidity. It could have moved higher, but it didn't. The important sign was that the daily gap has formed. It was just a liquidity sweep, price now seeks lower prices, as long as that gap is not violated.
From external liquidity to internal liquidity. After we got the sign that we won't move higher, the draw became the weekly gap as I have mentioned. We tapped into it once on December first. What has happened after? Did the weekly gap did it's job and sent price higher, creating bullish gaps out of it? No. Clearly no. From that point on the next draw was the low of the weekly gap. The weekly order block. "The next internal range liquidity". Price delivery rebalanced itself fully. Do you see how the daily candlestick bodies respect the weekly gap? Maaan it's a beauty... love it! And we can anticipate the fact, that neither of those days closed below. Its a sign. An important sign, that has a place in our narrative.
The narrative always has to contain a clear target too. Our first target is the daily gap. The daily gap was the sign that we will seek lover prices and it is also our first key level to target. A narrative should be built on higher timeframe key levels. Always. A level from where price can reverse, and a level that draws it.
What do I look for on the lower timeframes you may ask. The same thing. Fair value gaps. Nothing more. No fancy this and that. One concept that combines everything and helps you remove the blur. All the other lines on the chart besides fair value gaps are just distracting you and testing your patience. Know what you are looking for.
Believe me, higher timeframe fair value gaps are marking out everything you need on the lower timeframes too.
-The highest probable order blocks
-The highest probable liquidity pools
-The highest probable refined fair value gaps
Don't make it harder than it is already. Focus on the basics and don't let fancy indicators and concepts distract you. Master fair value gaps and you can call the main moves in the markets.
Hope I could help you with this. Hit me up if you need more.
Ok byyy
Would you believe me if I told you I only used 2 fair value gaps to call it on the 4h chart?
Everything that I do is origins from a higher timeframe fair value gap. What you can see on my chart is a Weekly fair value gap and a Daily fair value gap. That's all. The colored lines are "just" the bottom of these gaps. I tell you why it is more than enough.
You know what a high probability bullish order block is? It is a down close candle before an aggressive move up. What is an aggressive move up? A displacement in price. A displacement can be identified with a fair value gap inside the leg. This exact weekly fair value gap on my chart has a low marked up right? You know what's that low called? A high probability order block on the weekly chart. So we have one important range on our chart so far.
We have to know that price tends to rebalance these gaps, created on the higher timeframe. So it was a draw on liquidity for me in the first place. A magnet to price. The first idea was that price will touch into this weekly gap. It was based on the fact that the daily chart formed a bearish fair value gap, after taking buy-side liquidity. It could have moved higher, but it didn't. The important sign was that the daily gap has formed. It was just a liquidity sweep, price now seeks lower prices, as long as that gap is not violated.
From external liquidity to internal liquidity. After we got the sign that we won't move higher, the draw became the weekly gap as I have mentioned. We tapped into it once on December first. What has happened after? Did the weekly gap did it's job and sent price higher, creating bullish gaps out of it? No. Clearly no. From that point on the next draw was the low of the weekly gap. The weekly order block. "The next internal range liquidity". Price delivery rebalanced itself fully. Do you see how the daily candlestick bodies respect the weekly gap? Maaan it's a beauty... love it! And we can anticipate the fact, that neither of those days closed below. Its a sign. An important sign, that has a place in our narrative.
The narrative always has to contain a clear target too. Our first target is the daily gap. The daily gap was the sign that we will seek lover prices and it is also our first key level to target. A narrative should be built on higher timeframe key levels. Always. A level from where price can reverse, and a level that draws it.
What do I look for on the lower timeframes you may ask. The same thing. Fair value gaps. Nothing more. No fancy this and that. One concept that combines everything and helps you remove the blur. All the other lines on the chart besides fair value gaps are just distracting you and testing your patience. Know what you are looking for.
Believe me, higher timeframe fair value gaps are marking out everything you need on the lower timeframes too.
-The highest probable order blocks
-The highest probable liquidity pools
-The highest probable refined fair value gaps
Don't make it harder than it is already. Focus on the basics and don't let fancy indicators and concepts distract you. Master fair value gaps and you can call the main moves in the markets.
Hope I could help you with this. Hit me up if you need more.
Ok byyy