Kardec Trader walks through an EMA-stacking strategy that trades fair value gaps around 3am. Wait for a doji, enter when the next candle closes below it, stop below the doji low, and take profit based on daily levels.
5, 9, 13, and 21
Around 3:00am (also mentions 2:30 and 3:30)
Below the low of the doji candle
So I have a few EMAs that I use. This is a five EMA, the nine I use 13, 21. Okay. When I come into the market, see how all these EMAs here, the 5, the 9, the 13 and the 21, they're all stacking. So it's showing strong bullish structure already. If they were intertwining like this, if the EMAs were crossing like here, I wouldn't be interested in any price action that has to do with that because it's a low probability condition. I'm looking for 3am hits here. I see a fair value gap here printing on the 3am candle. Right. It doesn't have to be at 3am, but based on my data, when the candle is at 3:00am or 2:30 or 3:30, it's normally really, really highly probable that the trade is going to go in my direction. I'm then going to look for. It's going to be a doji candle. Right. This is what ICT calls. It's the consequent encroachment or the 50%. Yeah. If I get a doji candle here, especially a wick that wicks through it and I have my EMAs aligned and I'm also seeing this strong fair value gap. And then the next candle after this doji candle closes below this high. Right. So when this closes here, I'm like all in. So I see this, I'm entering here. My stop loss would be below this candle low here. Right. And then I would jump to the daily time frame and then I would look for my TP and my TPS could be huge.
