Fvg and bag fillGAP THEORY
Fair Value Gap
The gap b/w the 1st and3rd candle.
If the 3rd candle closed or consolidated inside the second candle it offers entry with some confirmation on basis of HTF bias
Break Away Gap
The 3rd candle which closes above or below the 2nd candle confirms the Break away gap(BAG)
Buy side:- the 3rd candle body close above the 2nd candle high. Indicates buy side pressure .
Sell side:- the 3rd candle body close below the 2nd candle low. On seeing those sell side pressure we mostly (not every time)don't get a pullback into the FVG above
Points to remember
Only sell at premium & Buy at the discount.
Stick with the HTF bias.
Participate during the kill zone.
Risk management is the key for a profitable Trader.
Strictly 1:2RR
Imbalancefill
Liquidity Hunter - FattyTradesThis indicator is used to automatically identify and plot two forms of liquidity that will be targeted by market makers.
The first form of liquidity is based on multi-time fame highs and lows. It plots 1H, 4H, D, W, & M liquidity on an intraday chart to make it easier to identify. I believe hat liquidity is what drives the market and the most common form of this liquidity can be identified through higher time frame highs and lows. You can use whatever method you prefer to determine which liquidity pool will be targeted. When the liquidity is purged, it will be shown as dotted lines. This should not be used as traditional support/resistance, but rather as targets for the market.
The second form of liquidity is in the form of imbalances or fair value gaps. You can select a higher time frame to be plotted along with the current time frame you're viewing to identify imbalances that will likely be targeted intraday. We know that higher time frame fair value gaps work equally well as targets for market makers. When a higher time frame FVG is broken into, it can also act as a very powerful form of support and resistance. By default, when a fair value gap has been mitigated it will be removed from the chart, however this can be disabled.
Between these two forms of market maker liquidity targets on the chart, it will be easier to formulate a thesis intraday to determine where the market will move. It can help minimize the amount of switching between higher time frames that needs to be done, allowing you to identify targets while trading on your favorite intraday time frame for optimal risk/reward.
In the near future, I will build in alerting mechanism to alert when liquidity on higher time frames as been purged/mitigated.
