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I like stocks and trading • Founder @MMTtrading and @PipBack_com

Aug 12, 2024, 10 tweets

Better Version of Order Blocks; Fair Value Areas

A Thread🧵

First we need to cover an OD (Overlapping Defense) again.

Now where do Fair Value Areas actually get created?

We can now look at the 3 different FVAs we have. We will cover them from best to worst.

The first FVA and the best FVA, is the Fair Value Area that has an Overlapping FVG as well as a Nested FVA. A nested FVA is a Fair Value Area that is within the main FVA.

The second FVA has just an Overlapping FVG.

The last and worst FVA is when we create a Fair Value Area after sweeping a High or Low. In this scenario we have the potential to have a reversal as the FVA is not very high probability.

Now that we understand the different types of FVAs we can now understand if we should trade off of the FLOD or the OD. This depends on two factors.

Lastly, to deepen our understanding of Fair Value Areas we can do a Case Study.

Full Video👇

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