Summary
The video explains the concept of fair value gaps and how overwhelming they can be when reading multiple at once. It introduces the idea of two candle rejection to address this issue and emphasizes the importance of PD Rays in understanding price movement, particularly focusing on swing highs and swing lows. The goal of price action is highlighted as creating a new fair value gap, and transitioning these gaps from daily to hourly time frames helps in understanding price movements effectively. Scenarios of two candle rejection based on bullish and bearish fair value gaps are explored in detail throughout the video.
Introduction to Fair Value Gaps
Explanation of fair value gaps and how they can be overwhelming when reading many at once. Introducing the concept of two candle rejection to fix this issue.
Foundation of Price Action - PD Rays
Importance of PD Rays in understanding price movement, focusing on swing highs and swing lows.
Using PD Ray for Price Action
Utilizing PD Rays for determining price direction and respecting/disrespecting arrays.
Price Action Objective
Highlighting the goal of price action which is to create a new fair value gap.
Analyzing Fair Value Gaps on Different Time Frames
Explanation of transitioning fair value gaps from daily to hourly time frames to understand price movements.
Understanding Two Candle Rejection
Detailed explanation of two candle rejection based on fair value gaps and different time frames.
Scenarios of Two Candle Rejection
Exploring different scenarios of two candle rejection based on bullish and bearish fair value gaps.
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