Because we're bearish on the pound-dollar, and we're bullish on the dollar, we would expect to see this FVG to be traded through it and fail. Understanding the narrative, then you can anticipate seeing PD arrays that would otherwise, in instances that would be like, if the dollar was bearish, trading back down to this level here would be considered a bullish scenario for the pound-dollar. But because we believe that ultimately we're going to go higher on the dollar index, trading back down here anyway, when we've already used it we want to see it fail. We would expect it to trade through it. Now, if it does that, we would expect it to go back up, touch the low, respect the midpoint of it, not trade the entire range and touch the top of it. But if it does that and it starts to move lower, then I'm confident that we're going to go below this LL, and then that means that we would expect a dollar considered bullish to be continued. And then any rallies in NASDAQ back, we would treat them as a suspect rally and look to fade that, and any FVG to go short, we would feel confident taking the short there. This is intermarket relationship.
<aside> 📝 Intermarket relationship: you look at other markets to support or negate and idea. Not simply taking a trade because a pattern has formed.
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💎A fair value gap that fails in its function of bullishness or bearishness. If it fails, it will become an inversion fair value gap after it comes back to it. If you take use a FVG to go long and your SL gets hit because the gap didn’t hold, don’t get mad. This is only giving you insight that the DOL is lower and you reverse your bias and make up for the losses or even more.
💎When price fails to reach C.E of an Inversion FVG that signifies that the BPR is not permitting price to go higher than that. That means the DOL is still lower.
💎Mohawks not only are permissible, but they can also be a superior entry.
However if the markets comes to the FVG that we expect to act as Resistance, but instead it uses it as Support what do we do? Nothing. Its okay to miss moves, but didn’t lose you money.