A trader walks through a $4,000 win using fair-value gaps and supply-demand concepts across multiple timeframes. He rejected an early short, then took a long on the 2-minute chart when a 5-hour bullish gap, 1-minute bearish gap, and bullish supply-demand aligned on both ES and Nasdaq, exiting at 1:1.2 reward.
Chapters
This is going to be a full trade breakdown on today's price action. And on today's trade, there was one winning trade, two potential winning trades. We had very nice trendline liquidity and overall very okay price action. It started to get choppy after around 10:15 AM today. So let's jump straight into it and how you could have made money with Inversion Fab today. So no messing around, let's start with the daily time frame. Oh, I felt like I needed to sneeze then. Okay, the daily time frame has been the same as it, as it has been for literally a while now. There is not much that we can do on the daily time frame. So on days like this, when the daily time frame is just not obvious whatsoever, we need to drop down to the lower time frames. We drop down to the 4-hour time frame, and, and let's go back here. Where's the replay mode? Okay. So around, yeah, it's around here that we could see today's price action. So let me make this bigger for you guys. So yeah, at 10 AM today, the most obvious thing on the 4-hour time frame was the fact that we embarrassed this bearish FVG. So you might be wondering, okay, that makes us obviously more bullish today. Now the reason why I wasn't super bullish off of the bat today was because of this 1-hour time frame. So now we go to the 1-hour time frame. As we can see on the 1-hour time frame, we actually inversed this bullish fair value gap. So what I said today on the stream— I stream live every single day, all of the links are in the bio, guys, do not miss out— what I said on the stream today was highest quality play right now would be for us to go to these lows, sweep this 1-hour low because we've got this 1-hour inverse, then look for moves up following the 4-hour bias and targeting the 4-hour highs. That's what I said at the start of the stream, and Yeah, that's why, that's what I wanted to see going into today's trading session. So here is open at the— actually, at open there was a potential short position that I'll go over now that I know some of you watching this would have took the play, and it really was not a bad trade to take. Okay, so yeah, here's all pre-market. We also had Red Folder news at 9:45 AM today. So yeah, here's open right here. We had this potential long position. The reason why I wasn't interested in it in any longs right here was simply because we swept the highs on ES and it's just pre-market. We was not respecting any fair value gaps below and we had no SMT. We did have an SMT on the higher time frame, but nothing good enough to enter into any plays. So we play at the price action here. We go to the 2-minute time frame. We had this 2-minute bullish fair value gap. We also had a bearish SMT. So we failed to sweep those highs on ES, we swept it on NASDAQ, and we were also respecting the 15-minute bearish fair value gap right here. So like I just said, a lot of people did enter into shorts here. Now it's not a bad play. The reason why I didn't take anything was I usually only like to go for the higher quality trades when I'm trading before Redfall, the news. We had Redfall at 9:45. Now as much as I wanted the lows on the 1-hour from the information that I just gave with the high time frame bias. I would have just loved to see something a bit more cleaner, something not instantly at open with ES 5-hour gap being inverse, for example. So if ES inverse the 5-hour gap here, I would have definitely entered into short positions there. But as you can see, we were just respecting this big bullish 5-hour gap on ES. If you did enter into this play, and I know a few people in the stream did as well, then fair enough. I said it was a bit more of an aggressive play because ES didn't inverse the 5-hour gap. And that's exactly what it was. It was a bit more of an aggressive play that ended up working perfectly to these lows. Now this is where it gets interesting, because remember what I said earlier? We had that 1-hour, we tapped into the 1-hour. Now, now what I would like to see is price action to come up and come up targeting that 4-hour fair value gap. So we create this singular bearish fair value gap here. Was it— I don't think this was the fair value gap. Oh yeah, no, that was the 5-hour. You got— so we create this 1-minute and 2-minute 5-hour gap. I was on a 2-minute time frame, that's why it confused me. There's the 1-minute. So we have this 1-minute and 2-minute 5-hour gap. Again, we have another bullish SMT. What's also very nice is we've had a retracement into this 4-hour bullish FVG right here. So we mark out this 4-hour 5-hour gap. The 50% of this 5-hour gap is a very nice zone that price action likes to come and tap into. And as you can see, the this red dotted line there, that's 50% of that zone. So we come to 50% of that zone, we create this bullish SMT, we have a 1 and a 2-minute bearish fair value gap, we're correlated with ES as well, we have this obvious breakeven point. Now I didn't enter straight away on this candle close because we did actually have ES equal lows below. So I waited here, I waited 1 second, I seen the fact that we reacted from this bullish fair value gap here. Also on ES, we were expecting a small bullish fair value gap. So there as well on ES, we respected that small bullish value gap. Once I seen that we got it— once I seen that we got this small retracement, I entered into this trade because of all the reasons I just said. Now we have an even better risk reward. So just to this high right here from where I entered is already above a 1:1 risk to reward. So that's my entry. Ideally, I want to be taking profits all the way up here, but with the market conditions that we're in recently, it's not super risk-on in my opinion. So as soon as price action gave us this nice bullish reaction, ideally for the take profits up here, I would have just liked to see some strong displacement and take 100% profits at that high. But I wasn't going to risk all of my profits, so what I did was move my take profit point to here. So if price action now retraced, again, this is above a 1:1 risk reward for me. And with the market conditions recently where we're just not getting as many trades, I wanted to lock in some profits, and price action ended up rejecting, tagging me out for around a 1:1.2 risk-to-reward ratio, hitting that take profit point. And then it would have been a break-even trade if I did not do that. So very, very smart on my end there, locking some profits. I uploaded my full trade executions as well to my Discord and, and on Instagram. So overall, very, very nice day. And then of course, after that, we just get this consolidation. So the two potential trades was this 2-minute at open, or this long 1 and 2 minute long afterwards. I preferred the longs than the shorts, just giving a bit more context in my opinion. And yeah, great trading day Tuesday, Red Folder news. I'm trading the 11 to 12 right now, and I'll also most likely be having a look at the PM session. Check the first link in the bio to join the live streams every single day without fail. Let's go, guys!
