17,626 Winning Trade Breakdown (80% IFVG TRADING STRATERGY)

Kai Davis breaks down a winning trade across multiple timeframes, from daily to 1-minute charts. The setup combined a bearish fair-value gap, liquidity sweeps, and a bullish stop-loss move on ES futures, with entry confirmation and three profit targets scaling from breakeven to trendline resistance.
Chapters
Welcome back to the second YouTube channel where I'm going to be breaking down the best trade that we took this month in the Discord. An absolutely amazing trade to take, but in my opinion, it was actually a tiny bit more of an advanced trade, and this is why we'll be going over this in this video. If you do like these videos, make sure that you like, subscribe, and leave a comment so I know you guys are watching them and enjoying them. But yeah, trades like this really just go to show that number one, you cannot be a robot when you're trading. Please, if you're trying to become profitable, I say in my streams, I say to you guys all the time, you can't be a robot. You can't follow a full mechanical strategy because they simply do not exist. And if you ever hear somebody telling you that full mechanical strategies do exist, then tell them to make a robot for that strategy because it is extremely hard. And for the strategies that are fully mechanical, they would be worth millions and millions and millions of dollars. Now hopefully in the future with all the AI stuff, I can make my trade my trading strategy more into a bot. But for now, we have got to do with our own brain and our own skills and actually learn how to read the markets exactly like I did today. And it was amazing. And by the way, on my last point, I don't think that anytime soon that you will be able to get robots for good strategies like this. So learn the strategy properly for now. So yeah, starting with the daily time frame. Now, the daily time frame, I read so, so, so well today, and I want to explain why. So if we look at the daily time frame, as we can see, we had had this massive drop on Friday. So this massive drop on Friday obviously has caused price action to no longer be trading at all-time highs, which in my opinion is absolutely amazing. Someone, could you shut my door please? So yeah, we're no longer trading at all-time highs. We are inside of this big bearish fair value gap. Of course we have an inverse loads of bullish fair value gaps to the left. We swept this south side liquidity, we swept this south side liquidity, and yeah, overall just a very big strong candle down. One second. All right, this is the second YouTube channel, there's no cutting out on this video. So jump into the 4-hour time frame. Now this 4-hour time frame is what is very, very interesting. So this is the chart that we were looking at when we've seen the price action today. As you can see, again, we have this amazing displacement down, and because of the daily time frame, this being so bearish— we're in this bearish fair value gap, we've embarrassed all these fair value gaps to the left— the daily time frame is more bearish, and we have this amazing low right here. If we also drop to the 4-hour time frame, we have also— actually, again, we can't see this candle, we had to open— but if you drop, look at this 4-hour time frame, we have also embarrassed this 4-hour bullish fair value gap. So for that reason, and the daily time frame, we are a lot more bearish than we are bullish, and I would like price action to go for this low. But the one reason why I was potentially looking for longs is because of this big unmitigated bearish fair value gap. And I said on the stream— if you're watching the stream today, over 300 people, which was amazing, well done for everybody who turned up— I said there's a very, very, very high chance, and best case scenario, we come up into this bearish fair value gap because we've came down so much on the daily and on the 4-hour. I just I just don't think if this is going to be the target and the draw on liquidity that we're going to leave a big unmitigated bearish fair value gap untouched like this. So I said my highest probability play would be for us to come up and then potentially look for short positions. Of course, there's always a possibility that we just want to go down straight for these lows, and I would 100% be okay with just taking shorts. When you're trading, you're only trying to react to what the market is telling you. And if the market gave me a nice short, I'm taking it. If the market gave me a long with these 4-hour unmitigated have I up to above, I'm taking it. So we straight away drop down to the lower time frame and look what we have. So starting off right here, we've of course swept all the sell-side liquidity. And what is very, very good about today was we were extremely correlated with ES. So as you can see, we set this low, we swapped this low, we also did the same thing on ES, we came down. Now a question that I got asked is, was we really respecting anything to the left, being the higher time frames? So let's quickly have a look. So if we drop to the— let's jump to the 1-hour time frame. As you can see, we tapped into this 1-hour fair value gap. The 15-minute, we have not respecting anything. So the answer is, on this type of trade, we're not really respecting anything to the left. You know, I'm not— the reason why I'm entering into this trade is not because of my higher time frame and my higher time frame narrative with bullish fair value gaps. The reason why I like this trade is, one, if we play this price action out, we get a very, very nice bullish candle close above this barish fair value gap. Okay, so of course that's one thing that we are looking for when we're going to enter. What is also very nice here, we have a bullish SMT. So ES has took this low out in the market. Now this is what I mean by a bit more of an advanced technique, because we didn't— because on ES right here, so this, this is a little type of context that you need to be paying attention to. On ES we had equal lows right here where we don't have on, on NASDAQ. As you can see, as well as that on ES, we also had an unmitigated 1-minute fair value gap here. So on ES, what actually happened on this candle right here where we created this SMT is we swept the low on ES, tapping into an unmitigated fair value gap on ES, creating this bullish SMT. And then straight after that, we got this very nice displacement candle out of this bearish fair value gap. We have a 5-minute fair value gap unmitigated right above. So these were my confluences entering into this trade. We have a very nice string bullish candle. This is your entry. Your stop loss is only we get a candle close back below this inversion fair value gap. The unmitigated fair value gap, of course, is where we want price action to go to, and this is our aggressive breakeven point. The reason why you have to move your breakeven point this aggressively on a trade like this is because as soon as we take this high, we are going to tap into an unmitigated fair value gap. When we do so, we don't know if price action is going to respect this or disrespect it and come down. So that has to be your stop loss to breakeven point. Above, we have these 1-minute equal highs. Not only do we have those 1-minute equal highs, we also have some amazing trendline liquidity. So as you can see, we have some obvious high resistance trendline liquidity. High resistance liquidity run simply means buy side liquidity resting in the market, and those reasons alone was why I took this trade. I did think that this would be a breakeven trade, I'm gonna be real, because we had the 5-minute unmitigated here. But these types of trades, look at that displacement. I took partials, I literally took partials around the 1:1-ish around this point. The reason being is just because we respecting so many fair value gaps to the left. Price could have easily, for example, respected this fair value gap and then came down and stopped to break even. Nobody knows what's going to happen when we come to these fair value gaps in the markets. Of course we want price to go for the trendline liquidity, the equal highs, but the reality is we don't know, okay? So as long as you're managing your risk, taking profits when you should be, stop loss to break even here, taking partials, and leaving my main take profit for this trendline liquidity and for this equal highs. Now I did also mention something in the stream about this trendline liquidity, which I'm going to only keep for the people who watch my daily stream because it was kind of a cool moment the way that I predicted that this trendline liquidity would have got run through. Hopefully you enjoyed this video. I will be trading the PM session as well. All of the links are in my bio to watch me trade live every single day. You don't want to miss out on the streams. And of course, if you're a bit more serious, then the— my full private mentorship, just message me on Instagram and I'll 100% reply to you about it. Thanks everybody for watching. I'll see you for the next video.
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