Video Transcript:
One other trade that I did today—and we spoke about it this morning—is Gold. I don’t know if anybody watched gold. I’m really bullish on gold right now. We had this 4-hour inversion on Friday, and then whatever happened last night kind of screwed up the price action today. But I still like this inversion, even though it kind of reinverted with this candle. We started to move higher this morning, meaning the market wanted to move up, and we created this 1-hour fair value gap right down here. So I always had my eye on it.
A lot of people will get scared after you make a move like this and then have one big candle like that, but all they’re doing is coming back and rebalancing to go higher. We can’t really be afraid of that. So, going down to the 5-minute chart from the 1-hour this morning—we tapped into this 1-hour fair value gap right here. Let me just take off all this to make it clear. We tapped into the 1-hour fair value gap, and then we created an inverse fair value gap right here. This was a great trade to the external highs right here. I think this was like a 5-to-1 risk-to-reward trade.
This is a textbook setup—textbook. You have SMT, you’re delivering from a 1-hour fair value gap, you have SMT with silver, you have an inverse fair value gap, and you exit out. I would have liked to have seen a little bit more momentum. So here’s a little kick—you see this candle right here? Technically, this finished above the fair value gap, but I didn’t enter on that. Why? What’s wrong with that candle? Yeah, shooting star—whatever that means. All it means is that price went up and was rejecting prices, right? I don’t want to see that. Yeah—rejection. Perfect. It’s rejecting for some reason, so I don’t want to see that.
But then we come back in with a down candle, and then we engulf that down candle. Now we have a little bit more momentum on this candle. That’s when I entered. But this candle just didn’t give me the warm and fuzzies. After we had a down candle and it finished above that—and you know, this little tail here didn’t thrill me—but this candle had much more momentum than the last. That last one was almost closing near the lows. I didn’t like that at all. Then you have a 5-minute fair value gap here that it created. Sometimes, you can go down to the 1-minute. Right now, you’re on the 1-minute.
You could have waited for price to come into that, delivering from a 5-minute fair value gap. I’m not going to the 30-second on this. Then you have that little inverse fair value gap right there. You could have gone long a little bit higher with a little confirmation. That’s how you go from the 1-hour to the 5-minute and execute on a 1-minute or a 30-second chart. Perfect example. NQ—I would do this, because once NQ inverts with momentum, it goes.
But good trade on gold today. This was textbook.
Hey everyone, it’s Dale here. I hope you enjoyed the video. If you’d like to trade alongside me and our team of prop firm funded traders every day, then click the link below the video and hop aboard. We’re looking forward to trading with you.
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