Notes
- When Michael is really convinced that the price will go up quickly and will not respect a bearish FVG, he will use the immediate rebalance technique to enter a long position inside the FVG (future bullish IFVG).
- When Michael is really convinced that the price will go down quickly and will not respect a bullish FVG, he will use the immediate rebalance technique to enter a short position inside the FVG (future bearish IFVG).
- The aforementioned method of entering the position is based on his experience and is very difficult to teach.
- Decoupling (when the indices move in different directions) makes trading more difficult and lowers the probability of successful trades.
- High-probability trades appear when all three averages move in the same direction.
- If markets are decoupled after the opening, they will likely synchronize and move in the same direction later in the day.
- To determine future price movements, it is necessary to monitor divergences on higher time frames, i.e., 15-minute, 60-minute charts and above.
- Re-synchronization of the indices may occur after divergence (SMT) on higher time frames.
- Michael doesn’t put too much weight on the divergences between YM and the other indices because the Dow Jones Industrial Average Index comprises only 30 stocks.
NQ - Immediate Rebalance Inside FVG
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