Jesse Rogers says most traders lose on fair value gaps because they pick the wrong ones. Trade only gaps that form right after price hits a previous day or session high or low, wait for a tap back plus an engulfing candle, stop under the gap, and let it run.
Your fair value gaps fail you because you choose the wrong ones. You see, the problem is that you're picking them randomly. Most traders, they see a big fair value gap and think that is going to continue. But here are the fair value gaps that you actually want to trade. And those are the ones that form right after we trade into a time based level. Because when price hits these levels and then forms a fair value gap, that shows you that big players just stepped in the market. But enough said, here's how you're actually going to trade this. Step one is to wait for price to trade into one of these time based levels. Now, what is a time based level? Either the previous day's high or low or the previous sessions higher. Low. Step number two is you want to wait for price to form a fair value gap after it trades into the level. Step number three, to confirm that you're on the right side of the market, you want to wait for a tap back into the fair value gap and then an engulfing candle showing us the fair value gap is valid. This helps you eliminate losing trades. After that, you're going to place your stops under the fair value gap and let the market do the heavy lifting for you, trusting that you're in a high probability trade. I just opened up limited spots to trade with me live at Market Open. If you want one of these seats, comment. Yes and I'll dm you an invite right now.
