Trading Into Yesterday's Fair Value Gap

These are the two baskets from yesterday's pairs.



Today's pairs are currently approaching the FVG, so it'll be interesting to see if they show the same behavior of reaching it and pushing beyond.

Something traders will eventually have to realize is that no pair is inherently safe to trade, but certain pairs are safe on any given day. It's not about defaulting to so-called safe pairs like AUDNZD or EURGBP, or being stuck on a single pair like EURUSD or XAUUSD. Instead, it's about identifying which pairs are insulated from the erratic moves we've been seeing in the markets lately and trading those, the ones showing predictable behavior, for example, as shown in this journal, the pairs that tend to gravitate toward yesterday's FVG.

The basket so far from today's pairs. I'll wait to see if the FVG is reached tomorrow, the same as it did today for yesterday's pairs.

I'm guessing prop firms wouldn't allow this type of trading. They might call it gambling since more than one trade is being placed at a time. If anyone knows whether prop firms allow multiple trades in the same direction, let me know.

Daily Workflow for This Method

1. Pre-Tokyo Open (about 5 minutes). Scan all Forex pairs (majors and minors) and identify yesterday's FVGs. Today, for example, there are 10 pairs.
2. Wait for safe baskets (about 1 minute to check). Monitor for the formation of safe baskets of pairs. Safe baskets are unlikely to exhibit the erratic, unexpected movements we've observed in the markets, as can be seen in the screenshots I've been posting. Typically, 1 to 3 baskets will form.
3. Cross-reference and execute (about 1 minute per basket). As each basket appears, check whether any of its pairs match your FVG watchlist. If there is a match, trade those pairs toward the FVG by applying the buy or sell EA to the chart.

By identifying safe pairs, it follows that unsafe pairs have also been identified. By "unsafe," I mean pairs that are likely to exhibit erratic, unpredictable movements. For testing purposes, the pairs flagged as potentially unpredictable today are AUDCHF, CADCHF, EURAUD, EURCAD, AUDCAD, and EURCHF. Some of these pairs are likely to trend, but again, they are unpredictable, and that trend could easily flip and run strongly in the opposite direction. If you have any feedback or observations on these pairs today, feel free to share your findings.

I'm not sure if anyone is reading my journal, it's quiet in here. I'm not sure how much longer I'll continue posting if I'm just talking to myself with no feedback. This isn't a TV show, haha, this is meant to be a two-way exchange where we can learn from each other's observations.

Anyway, here are more pairs to add to the potentially unpredictable list for today: AUDNZD, EURNZD, and NZDCHF. From my observations, most of these pairs can trend nicely, but again, they can also be unpredictable and flip, suddenly trending hard in the opposite direction.

Disclaimer: Everything I share in this journal is for educational purposes only. It is not financial advice. If you decide to test any of these ideas, please do so on a demo account only.

I've adjusted my EA entry settings to take fewer trades at more optimal locations. This means fewer trades overall, but the count is still likely to reach close to 200 per day. The EA itself is simply an automated way of placing buys or sells. It does no decision making on its own. I decide which pairs to apply it to.

I am following your post and trying to get my head around the discretion part of your trading. Keep posting. When I have things to post, I will share my questions/feedback, etc. Also you are creating multiple threads, so difficult to follow.

I didn't close the trades yesterday since I'm testing on a demo account. What I'm trying to show with this screenshot is that even these pairs can push away suddenly, but the move still isn't what I'd call erratic. It's a sharp move against, but it stays within the structure instead of escaping it.