Daily bias Bullish

When the market environment is UP and the trend is UP – we look for long positions (buys) in the market.

Discount market <50%

The market is at a discount when the price trades BELOW the equilibrium level. We say the price is at a discount (low price).

Equilibrium

Equilibrium is a state of the market where the demand and supply are in balance with the price. We say the price of the market is at fair value.

Fair Value Gap (FVG)

A 3 candle structure with an up or down impulse candle that indicates and creates an imbalance or an inefficiency in the market.

Fair Value Gap Bearish

A 3 candle structure with a DOWN impulse candle that indicates and creates an imbalance or an inefficiency in the market.

Between candle 1 and 3, do NOT show common prices. The price needs to move back up to rebalance and fill the gap.

Fair Value Gap Bullish

A 3 candle structure with an UP impulse candle that indicates and creates an imbalance or an inefficiency in the market.

Between candle 1 and 3, do NOT show common prices. The price needs to come back down to rebalance and fill the gap.

Levels of liquidity

The area of prices where smart money players, identify and choose to BUY or SELL large quantities.

E.g. Supports, resistances, highs, lows, key levels, trend lines, volume, indicators, psychological levels.

Liquidity

The degree, rate and ability for an asset or security to be easily bought (flow in) or sold (flow out) in the market at a specific price.

Liquidity sweep (Liquidity grab)

Smart money buys or sells (and sweeps or grabs liquidity) from traders who enter, exit or get stopped.