Videos:
Fair Value Gaps (FVG)
Bookmap
Point of Control Levels
What is a Fair Value Gap?
A fair value gap (FVG) refers to a price range on a financial chart where there is a significant disparity between buying and selling interest. This gap typically occurs when there is a sudden and sharp price movement, leaving a visible space on the chart where no trading activity has taken place. Here are the key points:
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Formation: An FVG is formed when there is an imbalance between supply and demand, often caused by high-impact news, economic data releases, or large institutional orders.
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Identification: On a price chart, an FVG appears as a gap between the close of one candlestick and the open of the next candlestick in the opposite direction.
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Market Psychology: It represents a price level that the market may consider revisiting in the future, as traders and investors see it as an area where the market did not fully establish a fair price.
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Strategy:
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Traders often watch these gaps for potential trade opportunities, expecting the price to return to the gap area to "fill" it before resuming its trend.
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Some traders like trading an inverse move if there is a liquidity sweep. IE: waiting for price to break and close below a buyside FVG to short rather than play a bounce of the FVG.
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Overlapping FVGs where you have a buyside and sell side at the same level (aka calling it the "golden zone". These levels typically act as even strong support and resistance.
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Understanding and identifying fair value gaps can be useful for traders looking for potential entry and exit points based on market psychology and price action.
What is Bookmap?
Bookmap is a cutting-edge trading platform that lets you visualize market liquidity and gain incredible insight into the order book. If you are interested in BookMap, please check out their website here:
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The video below demonstrates how to use and interpret bookmap. Its a brief video to cover the basic strategy. For more in-depth details check out Bookmap.com.
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Note that the video uses Thinkorswim version; however, it has since been not available for futures trading on thinkorswim.
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Point of Control Levels
Point of Control (PoC) is not an independent indicator but a critical component within the Volume Profile indicator. It refers to the most popular price level where the highest volume of trades occurred within a specified time frame. It is highly effect to plot the past few days POC levels for intraday trading. Please see the video below on how to find and plot these levels each day.
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Risk Disclosure:
Futures and crypto trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
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Hypothetical Performance Disclosure:
Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results
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*NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. No NinjaTrader company has any affiliation with the owner, developer, or provider of the products or services described herein, or any interest, ownership or otherwise, in any such product or service, or endorses, recommends or approves any such product or service.”