A trader explains a multi-timeframe day trading strategy using fair value gaps and price inversions. He enters long positions when a daily sweep, 4-hour inversion, 15-minute gap, and lower-timeframe inversion all align, typically around 10:00 AM ET. Targets the prior sell-side area with a stop-loss above the 15-minute high.
I'm looking to trade this move here. Let's say the market's moving up from here, right back into a 15-minute gap. There is lower timeframe fair value gaps being created all around here. So for me to confirm that the lower timeframe is going to match the higher timeframe, once that lower timeframe fair value gap gets inverse, daily sweep, 4-hour inversion, tap back into a 15-minute gap. Once we tap into a 15-minute gap, we wait for an even lower timeframe inversion. And that's my confirmation. That's where I enter the trade here. But if you're trading the New York session, this would be the ideal open or the new 4-hour candle that opens at 10:00 AM Eastern. So this would be my entry here. My target would be down here where the current sell side rests from before. My stop loss for the day trade would be above the current 15-minute high.
