Thread On Fair Value Gaps (FVG) & How To Use Them Bisi Vs Sibi &

Dangstrat
@Dangstrat
25 Tweets • 2023-04-12 •  See on Twitter

rattibha.com 
Thread on Fair Value Gaps (FVG) & How To Use

Them
BISI vs SIBI
&
Before I discuss the different ways on how to use a
FVG, I will go over the anatomy of the FVG, what it is,
and why it forms.
There are two types of Fair Value Gaps (FVG).
BISI = Buyside Imbalance Sellside Inefficiency

SIBI = Sellside Imbalance Buyside Inefficiency
A Bullish FVG is a BISI . A FVG is made up of 3

consecutive candlesticks. In a BISI, it starts with the
high of candle #1 which will be the FVG low and ends
with the low of candle #3 which is the FVG High.
A Bullish FVG gets created when the low of candle #3
doesn't overlap the high of candle #1. This happens
when there is a displacement in price from candle #2.
It is called a Buyside Imbalance Sellside Inefficiency
(BISI) because during candle number 2 there is only
buyside offered to the market so there's a Buyside
Imbalance and because there's no sellside being
offered there's a Sellside Inefficiency.
Here is an example of a Bullish FVG (BISI)
A Bearish FVG is a SIBI. A SIBI starts at the low of
candle #1 which is the FVG High and ends with the
high of candle #3 which is the FVG Low. A Bearish
FVG is created when the high of candle #3 doesn't
overlap the low of candle #1. This happens from the
displacement of candle #2
It is called a Sellside Imbalance Buyside Inefficiency
(SIBI) because during candle #2 there was only
sellside offered to the market so there's a Sellside
Imbalance and because there is no buyside being
offered there's a Buyside Inefficiency.
Here is an example of a bearish FVG (SIBI)
It's the color of candle #2 that determines if the FVG is
a BISI or a SIBI.
BISI FVGs will have an up-close candle for candle #2.

Candles #1 or #3 color doesn't matter.
SIBI FVGs will have a down-close candle for candle

#2. Candles #1 or #3 color doesn't matter.
Now that you understand what a Fair Value Gap is, I
will now discuss the 3 different ways on how I use the
FVG:
1. Entry Model
2. Draw On Liquidity
3. Point of Interest (POI) / PD Array
1st Way: I use the FVG as an Entry Model but this

FVG is only valid if there has been a raid on liquidity or
POI & a market structure shift. You need both a raid +
mss before an entry on the FVG. The FVG is typically
created from displacement when mss occurred. BISI
vs SIBI ex:
For my entry model I stay on the M15 TF or below to
look for the FVG. Typically my entries are inside of
FVGs on M1-M5 timeframe after a HTF + LTF raid,
and M5/M15 MSS.
2nd Way: I use the FVG as a Draw on Liquidity.
Algorithm draws price towards liquidity & imbalances
in the market based on time. HTF FVGs will act as a
magnet so price can get rebalanced. BISIs will be the
DOL for short positions & SIBIs will be the DOL for
long positions.
If you're using the FVG as a DOL look at the HTF,
preferably M15 or higher. The higher it is the more
significant it is. A randon FVG on the M1 timeframe
shouldn't be used as a DOL unless there is other
confluence backing it up as in there's a key high/low
near it for DOL as well
If you're using the FVG as the DOL and you may see
multiple FVGs like this in a row then it means you
need to move up and look at higher timeframes
because all of these FVGs on LTF is 1 FVG on a HTF.
Pic #1 has multiple FVGs in the range on M5 so it's a
BISI since you dont have any down-close candles in
this range. Move up to M30 TF and you'll see it's a
single FVG. Price doesn't have to completely fill the
FVG. It could just test the high for BISI & low for SIBI
then reverse
3rd Way: I use the FVG as a HTF Point of Interest /
PD array where price could potentially reverse if there
is a market structure shift after raiding the FVG. Wait
for price to reach the FVG as a POI / PD Array (raid)
then look for a MSS before entering the trade.
Other helpful things to know about FVGs are: ICT's
Paint Brush Analogy, IOFED, & Consequent
Encroachment.
ICT Paint Brush Analogy:
IOFED = Institutional Order Flow Entry Drill
After a raid + mss, when price retraces back into a

FVG and immediately rejects and starts moving
aggressively towards the DOL that means it's a IOFED
because smart money is using that FVG as an entry
long or short.
IOFED examples:
Consequent Encroachment (CE) is the midpoint of the
FVG from the FVG low to FVG high. FVGs do not
have to completely fill. A lot of the times price will
wick/reverse off the low/high or CE of the FVG. CE
can also be used to measure 50% point of breaker
blocks and long wicks.
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Dangstrat

25 Tweets • 2023-04-12 •  See on Twitter

Thread on Fair Value Gaps (FVG) & How To Use

There are two types of Fair Value Gaps (FVG).

BISI = Buyside Imbalance Sellside Inefficiency

A Bullish FVG is a BISI . A FVG is made up of 3

BISI FVGs will have an up-close candle for candle #2.

SIBI FVGs will have a down-close candle for candle

1st Way: I use the FVG as an Entry Model but this

IOFED = Institutional Order Flow Entry Drill

After a raid + mss, when price retraces back into a

If you want to improve your discipline & trading edge

I spend hours just to make one thread so if this thread

These pages were created and arranged by Rattibha

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