How to use FVG Flips

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Disclaimer:

None of the contents within this page should be considered professional advice.

It is merely for entertainment purposes only.

I help Traders reach their full trading potential.

The aim is to be the bridge between who Traders currently are and who they want to become.


How Retail Traditional Technical Analysis actually works.

Today I am going to show everyone how I used this Fair Value Gap formed on Sunday Opening as an Inversion level.

What is an Inversion level?

Just like how retail support/resistance theory preaches…

Support broken turns into Resistance

Resistance broken turns into support.

However, sadly a Retail Trader does not know how to identify:

1. What makes a proper support level.

2. What makes a proper resistance level.

Thanks to @I_Am_The_ICT, we are finally able to see what creates a TRUE support or resistance level.

As ICT has taught us, FVG’s are the purest form of Support and Resistance.

In this example:

A Bearish FVG breaks, it turns into an Inversion Level for buying.

Let’s dive in.


The Purest Form of Support and Resistance

Now that we understand that FVG’s will provide the purest form of Support and Resistance…

How can we use this to improve our trading?

There are 2 ways to utilize it:

1. Anticipating the Inversion Level

2. Trading the Inversion Level


1. Anticipating the Inversion Level

This comes down to following simple retail theory again.

The more times a resistance level gets tested, the weaker it gets.

The more times a support level gets tested, the weaker it gets.

Blending this understanding with FVG’s…

We now understand that FVG’s will break the more times they get tested.

When they do break, they turn into an Inversion Level.

Slide left and right on image for before and after comparison.

2. Trading the Inversion Level

Now we understand how and when an Inversion Level forms, let us look into how we can use it for a Trade Setup.

First of all, the FVG shown is an “Old Institutional Reference Point”.

The algorithm will remember old imbalances… however

You need to blend that with a “New Institutional Reference Point”.

This will give you maximum confluence behind your PD Array selection.

New Institutional Reference Point: FVG
New Institutional Reference Point: OB

Once you have a new institutional reference point, you know exactly where to be looking for a trade.

At this stage, you are looking for an Entry Pattern within a Kill Zone


Wrap Up

So there we have it, everyone.

How to use FVG Flips:

  1. Anticipating the Inversion Level
    • This is for FVG’s opposing the Narrative and Order Flow
  2. Trading the Inversion
    • Pairing old areas of institutional order flow with new areas of institutional order flow
  3. Entry Pattern within a Kill Zone
    • Within a Kill Zone, scale down to a Short-term Perspective for an Entry Time Frame
    • Have a specific Trading Model i.e ICT 2022 Mentorship Model.
    • If the Trading Model manifests itself within a Kill zone, that is a viable trade setup.

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