In this video Kai Davis reviews a highly profitable intraday trading session using his IFVG (Intra‑day Fair Value Gap) model. He emphasizes that avoiding losing trades is more crucial than catching winners, explaining how higher‑timeframe analysis (daily, 4‑hour, 5‑minute) guided his decisions. He identifies unmitigated and inversion fair value gaps, liquidity sweeps (south‑side and buy‑side), and the impact of a 10 AM “red‑folder” news release on trade selection. By aligning entries with daily unmitigated gaps and respecting liquidity structures, he entered a short trade with a 1:1 risk‑to‑reward, took full profit at a 5‑minute unmitigated gap, and avoided long positions due to news risk. Throughout, he promotes his Discord community for live trading sessions and encourages viewers to engage via comments.
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Welcome back to another video on this channel. Now I know a lot of people, especially in version 5, are you got traders would have got destroyed on these exact short positions today. And in this video I'm going to be showing you how we read this mark— well, how I read this market like a book and my whole Discord followed me. Okay, now the most important advice that I could ever give you is the best way that you're going to become a profitable trader isn't necessarily going to be about the winning trades that you catch, it is going to be more important about the losing trades that you avoid. And today was a perfect example of this. Now, the reason being, if you catch more losing trades, firstly, of course, your account is going to go down. But not only that, it affects so much. It affects your psychology, it affects your risk management. And ultimately, when you're trading, you need to have as much confidence as possible going into trading. So let's start off with the most important time frame today, and the reason why we did so well is understanding the higher time frame analysis. Now, over the past few days, we— I have called— I keep saying we just because, you know, I trade in my Discord, and yeah, it's just such a great community. If you're not already in the Discord community, you're missing out so much. The link is in the bio. So starting off, this is the daily time frame. Now this is so important for one main reason. We can't get a lot of information off of the daily time frame recently just because how the candles have been moving. But let's zoom in and look at what happened yesterday. We created this bearish fair value gap, and that is the start of the fair value gap. As you can see, we have this unmitigated gap. Now statistically Let's go back to the basics. All a fair value gap is, is a fair value gap that has not been mitigated yet. Statistic— statistically, unmitigated fair value gaps get tapped into, and well, they get tapped into most of the time. That is a fact. So with that information, if we can process that information and add it with even more context, then that is when we can look to really take advantage of the markets. And if we take a look at the 4-hour time frame, we have a beautiful inversion fair value gap on the 4-hour time frame after we have swept south side liquidity with a wick. So look, look at this. We've wick south side liquidity, we've inversed this 4-hour. Where should price action go in the short term? Price action should be targeted to this daily unmitigated FVG. And that is one of the main reasons why I faded and why I avoided these potential shorts at market open. Now, was I completely— okay, the shorts were here. Was I completely against shorts today? No, I was not completely against shorts today. If we had a nice reason to take shorts, and I would have took shorts— we had swept buy side liquidity here and we had an SMT, we perfectly worked buy side. I can 100% see why traders would be trapped into taking shorts here, do not get me wrong. I can 100% see it. The main reason was because of the high time frame, what I just told you about. But another reason why I didn't like shorts here is because of what the ES chart looked like. So if we take a look at best right here. As you can see, we've swept out a lot of the internal liquidity. So all of this internal liquidity that we have swept out, ideally I would want that to be my breakeven point. Also, we came so close to this external liquidity point. Again, if I was entering into shorts here, so that would of course be my entry if I was going to enter. My take profit somewhere down there at the lows. I would have to 100% be at stop loss to breakeven at this low here, which is very aggressive, especially when I'm going against my daily bias. Ideally, I would just want something nicer. I would want something more high quality. We also had Red Folder news at 10 AM New York time. So for those reasons, we swept out all this internal liquidity very close to the external, going against the daily time frame. That is the main reasons why I faded this losing trade that I know a lot of people took today. So again, high time frame analysis is your best friend when it comes to price action like this, especially risk-off price action. Now this long position here, why did I not enter into this long position, you might be wondering? Now these equal highs are where the 4-hour unmitigated— sorry, the daily unmitigated is. So let's mark that out. The reason why I didn't enter into long positions here, for a simple reason, going back to my rules I've always used, we have red folder news at 10 AM New York time. So this candle right here, we have red for the news. I do not like to take trades just before the news because statistically they don't work. So that is purely the only reason why I avoided long positions today. I would have loved long positions to this daily unmitigated, which was my high time frame analysis. As you can see, we sadly just did not get anything. And yeah, this one ended up working, but just no, no trade here. Purely because of this 10 AM red folder news. Then we swept buy side liquidity. This right here is a singular bullish fair value gap. Now I'm dropping so much sauce in this video, so I hope you're paying attention. What is so nice about these shorts is the context that we have of tapping in this strong draw on liquidity being the daily unmitigated. Once we tap into this daily unmitigated, it doesn't give us a whole lot of information, but we get a whole lot of information when we can clearly see that we have rejected from this point. So now that we have swept this high and rejected, that's where we can build this up as context. We rejected this high, not only do we take it, then we get this move down. So this confirms that we're rejecting these highs. Then this is where I entered into the short position, stop loss above the fair value gap. Now you might be wondering, where would my take profit be in this instance? It's pretty simple. My take profit in this instance would be this 5-minute unmitigated, a very nice draw on liquidity. It goes back to the point I was making earlier. Most of the time unmitigated fair value gaps get tapped into. A nice, just above a 1:1 risk to reward, especially with the market conditions that we've been seeing recently. It just makes sense to take all profits off at lows like this. So yeah, that is where my— I took 100% of my profits. I took 100% of my profits at this low down here. And that sums up today's trading day. Then I didn't trade anything in this chop right here. And that was pretty much price action for the day. And now we're into 11 AM. So yeah, I hope you guys enjoyed this trading video. If you have any questions, please do let me know. Of course, I live stream every single day on my Discord. Right now, my Discord are literally just trading the 11 to 12 session together, which is very, very great to see. So this is literally just the community talking to each other. Trading the 11 to 12. Obviously the New York AM session is from 9:30 till 11:00 AM New York time. So let me know how you got on today in the comments below. Let me know if you want me to keep uploading these sort of videos, and I'll see you all in the next upload. Well done everybody today, team! Let's go!
