17,541$ Winning trade... (Trade Recap IFVG 80% Strategy)

Kai Davis walks through a $17,541 winning trade on IFVG 80% strategy, explaining how he read higher-timeframe bias to go long despite short-term bearish signals. He covers fair-value gaps, liquidity draws, and why you shouldn't trade on bank holidays or before checking for high-impact news.
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Today is a bank holiday. Do not trade. Be smart and do something with your time correctly by watching this video. This is going to be a full trade recap from Friday the 25th of August on a winning trade that I took, and there was actually 3 potential trades to take on this day in my opinion. So this is going to be an action-packed video. Now remember, I am a day trader. I've been trading for over 4 years now. I've I have a community with over 38,000 members, so I do really know what I'm talking about. If you want more videos like this, then make sure to like and subscribe, and let's jump straight into it. So as I said, this is from Friday the 25th of August. Whenever you're looking at the markets, you always want to make sure if there is news or not. And on this day at 8:30 AM New York time, we had Red Folder news. Red Folder news is simply go to forexfactory.com, go go to the— look for the Redfall, the news folders that are red, and then look at the time. This on today, we had Redfall news at 8:30 AM. We got this large candle. The news high and the news low was created. So these are two extremely strong draws on liquidity right here. Resting up here is loads of buy-side liquidity. Resting below here is loads of sell-side liquidity. This is simply where people's stop losses are resting in the market. And where the price action has an extremely high chance of going to get. So when you're trading, if you get a trade in the direction of one of these liquidity draws, you should be holding to that draw on liquidity because it is such a strong draw. Now here is open. We get open right about on this candle right here. Now the first trade that some people potentially could have been interested was this short right here. The reason why I was not interested in these shorts is simply because we still have conflicting draws on liquidity. So we have clear news highs above, we also have clear news lows below. So with that in mind, we have the news highs and news lows. As well as that, as you can see, we've embossed this bullish fair value gap, but we have swept sell side liquidity. So right here we have took these lows, meaning that we have taken liquidity points. Therefore, this is not as good of a trade to take. Because we have taken that internal liquidity. Ideally, for a trade like this, you want a wick to be like that. Therefore, you enter on this candle close, and then you target this internal liquidity point as your breakeven point and potentially even a take partials point. But because we've taken that low, no trade there. As well as that, we have equal highs above. Before I jump into the rest of the video, let's look at the higher time frame, because as you know, that is extremely important. And right here the higher time frames, in my opinion, was actually a bit more bullish than bearish. Now, the reason I say they were a bit more bullish than bearish is because if we look at the daily time frame, what you can clearly, clearly see is we have embossed this bearish fair value gap. Now, you want to keep your trading as simple as possible. Because we've got a bullish candle close above this bearish fair value gap right here— bullish candle close above this bearish fair value gap— This means that price action is most likely going to come up and take all-time highs unless something changes when we are trading. So going into today on Friday, I was definitely a bit more bullish than bearish, meaning that I would rather have taken long positions than short positions. But if we look at the 1-hour time frame, something happens that could change your mind, and that is we get clear displacement down. Displacement is simply when you get a large moving candle in one direction. So we have string, string displacement down taking out all of this— all lots of sell-side liquidity to the left. But most importantly, we embossed these bullish fair value gaps. So we've embossed this bullish fair value gap right here, which was the LFG, the last fair value gap of the leg. We have also embossed this bullish fair value gap right here. So two bullish fair value gaps have been embossed, and we don't have another unmitigated fair value gap to target. So what should we come to? We should come to some sort of southside liquidity. So we have this southside liquidity draw here, and we have this southside liquidity draw right here. The most obvious southside liquidity draw being this swing low in the market, and then this is still a very nice draw but is more of an internal liquidity draw on liquidity. So even though my daily bias was bullish, now that we've embossed these bearish bullish fair value gaps, we've got this bearish candle close with displacement, below this, these bullish fair value gaps, I'm more than open to take short positions targeting these draws on liquidity. Because in my opinion, I'll be stupid if I wasn't. I'm not going to be stubborn and be like, okay, because we've unboxed the daily time frame, I'm going to only look for long positions. That's not how trading works, okay? We need to make sure that you're open when you're trading and you're not a robot. Most importantly, when you're trading, you're not a robot, okay? If you see people online trying to tell you, trying to say trade like a robot, or trying to trade like a robot, or get my trading bot and you'll become profitable— I'm getting a missed call right now, but this trading is more important, trying to teach you guys right here. So anyway, let's carry on with the day. And then as you can see, we just drop down, drop down, drop down. We end up taking the news lows, and there's no potential trades, no potential trades. It's 9:43 right now. We're still dropping down, still dropping down. This was the first potential trade in my opinion. So as you— as I just said, we had these draws on liquidity below. So we've still got this draw liquidity. This is the 1-hour internal liquidity. We haven't taken any liquidity. We've just came up, tapped into this bearish unmitigated fair value gap. So as you can see, we come up, tap into this unmitigated fair value gap, then we get this bullish fair value gap right here. The reason why this would be a nice trade in my opinion. It's very simple. We come up, tap bearish 5-hour gap, we have very strong momentum going down on the higher time frames, we have a nice strong liquidity below being this 1-hour that hasn't been swept yet. We also have equal lows right there that haven't been swept. So I would simply— if we inverse this 5-hour gap with displacement, which sadly we did not do, we did not get the inverse there, and then the next candle close we Inversive, how are you? Got— okay, what am I missing here? Oh no, this might have been a trade entry then. Yeah, so this is where you could have entered into a short position. I thought it'd take internal liquidity. No, so this actually looks like a decent trade, a trade that you could have took in my opinion. So yeah, we— unless the 5-hour you got right here, you target below right there. The only problem with this trade— it's not a problem, but it's just likely going to be a break-even trade The reason being, in my opinion, you have to move your stop loss to break even here, as then we take the liquidity and we're respecting the higher time frame, higher time frame value gaps to the left. So we could so easily come up and disrespect your entry. So this right here should come straight for this low, and then we shouldn't, um, yeah, with this displacement here, we should come straight for this low. So that's where you could enter, in my opinion. And yeah, so right now you have to move your stop loss to break even in my opinion, and then you'd simply hold for this low right down here. Um, but as you can see, okay, yeah, it did get stopped to break even. So yeah, that's one trade that you could have took there in my opinion, um, but that would have been a break even trade. And let's carry on playing the price out. So yeah, right now it's 10 past 10, we take out that liquidity. So sadly this trade just didn't take us to those lows, it would have been break even, but we did take the liquidity And now what you can see is we've swept this 1-hour low. So this is the swing lows that I had marked out. We've perfectly swept those swing lows and we get a bit of a reaction up. Now this was the first trade that I personally took. It was this long position right here. So as you can see, we have this bearish fair value gap. Not only do we have this bearish fair value gap, remember that the higher time frames, the daily time frame, is still a bit more bullish in my opinion. So I'm not opposed to taking long positions. We've swept sell-side liquidity here, we've came up, we've created the singular bearish fair value gap. It would have been a lot nicer if we, if we were expecting a fair value gap here, for example, which we did not do. And then we get a nice bullish candle close above this fair value gap. But you might be wondering, how on earth would you enter from this candle close when it's such strong displacement and we nearly taken out the highs? And the simple answer is we left equal highs right here. So this is one of the rare instances that I would only enter if price got a retracement, and then I would enter. And as you can see, price retraced down, so that's where I'd enter. Stop loss kind of closed below. You could take partials there, close to a 1:2 risk to reward ratio, and then hold for this very nice draw liquidity for an amazing risk to reward. As you can see, we did not do that. And then price— well, price did come up and hit that high, so you could have took profits there. Or if you're holding for higher you would have got stopped to break even. But whilst that was all happening, we had a nice potential short position. So remember, we've perfectly swept these lows, um, which isn't very nice for the shorts. Ideally, I'm sure a lot more people would have taken these shorts if we didn't perfectly sweep these lows right here. But what we have done is we respected this bearish fair value gap perfectly. So we've came up, tapped on this 1-minute bearish fair value gap, we've created a 1 and a 2-minute bullish fair value gap here. So this right here is a 1 and a 2-minute bullish fair value gap— sorry, not a bearish fair value gap. So 1 minute, 2 minute, it is not a 3, 4, 5, which is very important when you're trading. And not only do we inverse the 1 minute, but we also get a nice bearish candle close on the 2-minute fair value gap as well. So look, with this very nice displacement candle down on the 1 minute and on the 2-minute, Where should price action go? Price action should go for this liquidity point here. So it's kind of similar to the trade up here. You have to be aggressive with your breakeven point, in my opinion. Or if you were confident in this trade, you could not move your stop loss to breakeven at this low and move your stop loss to breakeven once we tap into this unmitigated fair value gap. So this right here would be your entry. Your stop loss to breakeven would be at those lows I just said. Stop loss only if you get a candle close back above these inversion fair value gaps. and then simply target the lows. You could target this low, you could target that low. They are all a very nice draw on liquidity. And let's see if it plays out. Boom! So right here you'd be stop-lossed to break even. And yeah, trade plays out perfectly. Now there is also one more potential trade. The fact that I'm giving this much free information out— remember, I do have a one-on-one, one-on-one private mentorship and a trading course and I livestream daily. I post so much content, it is ridiculous. All of the links are in my bio if you want to watch me do this live every single day. More importantly, if you are a more serious trader, then make sure you watch— make sure you join my private mentorship. That is where the serious gains are made. Now for this final trade, and of course if you're enjoying this video, I'll give one funded account away to somebody who's commented, who's watched this far in the video. So simply comment below. This trade right here, very, very simple in my opinion. We have a bullish SMT, so we've not swapped these lows on ES, but we have swapped them on NASDAQ. We have this 1-minute 5-hour gap, and we have equal highs above. It's not the best trade in the world in my opinion, especially because we have equal lows here, but it's one of those trades you could take a light entry potentially. While saying that, again, the higher time frame is a bit more bullish. We have it in last, this 1-hour low. So it's not an awful trade. It's definitely not an A+ setup. I'd say this is a B+, A- setup. Very, very nice displacement, which is nice. Of course, stop loss to break even at the equal highs, and then you can target this unmitigated fair value gap for a very nice risk to reward, close to 1:2.5. And as you can see, let's play the, the chart out right here, and this was another potential winning trade that you could have taken. So very, very nice trading day on Friday. Again, today is a Monday. If you're watching this video, never trade on a bank holiday. We'll be live trading tomorrow in my Discord on every single day. No matter when you are watching this. All the links are in my bio. Subscribe to the channel, leave a like, and I will see you on the next video.
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