Thread by @BraveheartTrade

How To Use FVG Flips [Thread]

First of all, all the concepts used in this thread belong to @I_Am_The_ICT

You can check out his YouTube Channel here:
youtube.com/@InnerCircleTr…

Today I am going to show everyone how I used this Fair Value Gap formed on Sunday Opening as an Inversion level.

What is an Inversion level?

Just like how retail support/resistance theory preaches...

Support broken turns into Resistance
Resistance broken turns into support.

However, sadly a Retail Trader does not know how to identify:
1. What makes a proper support level.
2. What makes a proper resistance level.

Thanks to @I_Am_The_ICT , we are finally able to see what creates a TRUE support or resistance level.

As ICT has taught us, FVG's are the purest form of Support and Resistance.

In this example:
A Bearish FVG breaks, it turns into an Inversion Level for buying.

Let's dive in.

Now that we understand that FVG's will provide the purest form of Support and Resistance,

How can we use this to improve our trading?

There are 2 ways to utilize it:
1. Anticipating the Inversion Level
2. Trading the Inversion Level

1. Anticipating the Inversion Level

This comes down to following simple retail theory again.

The more times a resistance level gets tested, the weaker it gets.

The more times a support level gets tested, the weaker it gets.

Blending this understanding with FVG's...

We now understand that FVG's will break the more times they get tested.

When they do break, they turn into an Inversion Level.

2. Trading the Inversion Level

Now we understand how and when an Inversion Level forms, let us look into how we can use it for a Trade Setup.

First of all, the FVG shown is an "Old Institutional Reference Point".

The algorithm will remember old imbalances... however

You need to blend that with a "New Institutional Reference Point".

This will give you maximum confluence behind your PD Array selection.

New Institutional Reference Point: FVG

New Institutional Reference Point: OB

Once you have a new institutional reference point, you know exactly where to be looking for a trade.

At this stage, you are looking for an Entry Pattern within a Kill Zone

If you enjoyed this short thread, check out my newsletter.
I will be posting free value there also.

Cya soon,
❤Braveheart.
bravehearttrading.com