MS / FVA Flashcards
(21 cards)
What is Fair Value Area (FVA)?
A 3 swing movement from the Intermediate Term Low (ITL) to the Intermediate Term High (ITH) and vice versa.
What does ITH stand for?
Intermediate Term High.
What does ITL stand for?
Intermediate Term Low.
What characterizes an Intermediate Term High (ITH)?
Swing High with a Lower Swing High to the Left and Right.
In a bearish trend, what happens to the ITH?
ITH will be protected.
What characterizes an Intermediate Term Low (ITL)?
Swing Low with a Higher Swing Low to the Left and Right.
In a bullish trend, what happens to the ITL?
ITL will be protected.
What timeframes are primarily used to spot ITH and ITL?
4H and 1H Time Frame.
True or False: The 4H Time Frame is sufficient to identify ITH and ITL.
True.
How are ITH and ITL similar to S&R?
They act as levels of support and resistance.
What happens if the market breaks through the last ITL?
If it wants to continue lower, we tend to trade back to the ITL that was traded to then continue lower.
What is the significance of retracement in the context of FVA?
Retracement offers buyers and new potential sellers a fair chance to get involved in the market.
Fill in the blank: The market likes to offer every single participant to get involved in the market, in other words, a chance at _______.
[Fair Value Area].
What does the term ‘Order Flow’ refer to?
Movement from Short Term High (STH) to Short Term Low (STL) and vice versa.
What is a key psychological aspect of trading mentioned in the text?
Trading is more about psychology than strategy.
What does the retracement signify in a bearish trend?
It indicates that buyers are being offered a chance to enter the market.
What is the relationship between ITL and ITH in terms of FVA?
FVA is from the ITL to the ITH.
What can be expected if the market respects the ITH after a retracement?
We can expect that ITH to give us a trend which then gives us the direction on the lower time frame.
What does FVA create after a new ITH is formed?
A Fair Value Area.
FVA is connected to finding the next?
PD Array direction
To clearly understand FVA we first need to?
Understand Market Structure.
