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👇
• • •
Missing some Tweet in this thread? You can try to
force a refresh
In the last few episodes we have focused on how to determine the Bias/Direction in the market. Now we need to look at how to find the Narrative in order to trade in our Bias direction.
Narrative is the PD Array that can drive price towards our Draw on Liquidity.
First we need to recap Order Flow Legs from Episode 3.
We now can use these Order Flow Legs to see Candle Science on the higher timeframes. We want to do this to minimize the amount of candles that we need to focus on. This will improve our trading accuracy.