A trader explains a simple system using Fair Value Gaps and liquidity zones. Bearish gaps signal shorts, bullish candles above them flip to longs. He claims an 80% win rate with stops only if price closes back above the gap.
Don't use anything but fair value gaps and liquidity when you are trading. You are going to use fair value gaps for your context and entry, and you're going to use liquidity for your take profit points. We are clearly respecting this bearish FVG, which we are going to use as context. If this bearish FVG got inversed, meaning that we had a bullish candle close above this FVG, we would want to look for longs targeting this high. But because we respected this fair value gap and then ended up coming down to invest these bullish fair value gaps, we are now going to enter and look for a short position. Your stop loss is only if there is a candle close back above that FVG, and then your take profit is simply a sell-side liquidity. This model is extremely simple and has over an 80% win rate. If
I lost 4,000$ Today Trading and would do it again next week... (FULL TRADE BREAKDOWN)
Losing 4,354 and i would do it again tomorrow... (80% win rate model trade breakdown)
