A swing trader shows how to use daily fair value gaps and rapid price inversions on lower timeframes to enter short trades. Watch for a bullish gap on the daily chart, then a quick reversal within two to three candles on the 1-hour chart. Enter at the inversion, stop above the recent high, target the prior relative equal lows.
You're a swing trader, this is exactly how you would have your swing. My job as a trader to look at the lower time frame and try to catch a move based off of an hourly, 15-minute, 5, or 1 minute. We tap into our daily fair value gap, and on the 1-hour, what do you guys notice? While we're on the retracement to the daily fair value gap, we left behind a bullish gap. I want gap to be inverse within 2 candles or 3 candles with speed. This is a good amount of speed. We have inversion, we have a change in the state of delivery. In my eyes, it's just a confirmation on a reversal occurring. And now you can take your swing trade here. You would have a short position. You can enter off the inversion, stop above the current high, and you can target your lows that we had earlier, which are all the way down here, which are going to be your relative equal lows. So this is going to be your relative equal lows.
