Liquidity + Fair Value Gap = Profit

After I broke the world record prop from payout, I've gotten thousands of DMs asking me one question. What strategy did you use? And every time I see these, I laugh because all I used to do it was liquidity and fair value gaps. So, in this video, I'm going to teach you everything you need to know about both and share with you the three-step strategy that helped me make over $4 million from prop firms over the past four years. So, grab your notebooks and let's get right into it. So, liquidity and fair value gaps. Now, most traders know these terms, but 99% of traders use them completely wrong. And here's how I use these tools to get real results. So, let's first talk about liquidity. Now, what exactly is liquidity? Simply put, liquidity are the resting orders in the market. Think about your stop losses and take profits. It's where stop- losses sit, limit buy orders sit, and limit sell orders sit. So, large institutions cannot enter or exit trades unless there are large opposing orders available. So, price is moved towards those areas that contain large clusters of resting orders and price moves to liquidity. Liquidity is the fuel for price movement. Now, as a very basic example, we're going to use session liquidity. Now, what is session liquidity? Think of session liquidity as the clusters of orders that form around each major trading sessions high and low. So, for the Asian range, that's going to be from 8:00 p.m. Eastern to 12:00 a.m. midnight Eastern. The London range is going to consist of 2:00 a.m. Eastern to 5:00 a.m. Eastern. And the New York range is finally going to be from 8:00 a.m. Eastern to 12:00 p.m. Eastern. Now, when you're trading index markets, just remember that the equity open is not until 9:30 a.m. Eastern.