<aside> <img src="/icons/reorder_gray.svg" alt="/icons/reorder_gray.svg" width="40px" /> Today we’ll learn about FVG, price delivery, time of day, daily bias, session bias, stops, where should you look for stops. All you need is the OHLC. How to work within the time frames, from the HTF down to the LTF. We will learn how to back test.
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We don't need to know yet where those small little pockets are on the LTF because this is a weekly candlestick. So inside that range, somewhere along the line in that very week of data, there are gaps, inefficiencies. We don't need to know exactly where they are, but we can identify that range right here. As soon as the 3rd candle closes and we begin a new week. That gap that's shaded in purple, we know that there's a likelihood that the market will want to, at some future time, want to reprice to that. That is not balanced. All it means is that shaded area that's purple, it's buy-side imbalance. So, the market has shown an imbalance, meaning it wants to go up, it did go up. So, what is it inefficient? It is inefficient in the sense that it hasn't had a sell-side delivery. Sell-side is when price is being offered downward, a down-close candle. For that FVG to be repriced to and offset the inefficiency of sell-side because it's buy-side imbalance, it's imbalanced, it has to be balanced later on. But right now its lacking SSL. That means that a down close candle must trade inside the purple range.
The algorithm seeks these areas because it's easily defined by arrays. Old highs and lows that are separated across the spectrum of three 24-hour periods (Daily FVG). It can be used on all time frames with top down analysis. This is the price delivery Continuum.
We should place the majority of our time and attention on the Weekly Chart. The best time do it is in the weekend when the markets are not m+oving. The goal is to find where is the present Weekly candle going to expand to, higher or lower.
Why can we expect price to go lower? -Because we’ve already hit our objectives. Once we hit our targets, whether for the week or a day, you have to grow real comfortable with just simply sitting still and waiting. Move very very slowly when you're trying to make money.
Price will go up/down only for 2 reasons.
The first thing that the algorithm will reach for are the inefficiencies and if there is none it will go after liquidity. If we are in Discount dealing and there is no Imbalance in Premium, but there is a high, it will go for the high. This is all your doing on the Weekly chart and this is how you get your bias.
Bearish bias on DXY means higher prices in FX. You have to go back-test any long setups formed between: