The algorithm will rebalance Fair Value Gaps after an
External Liquidity grab. ICT uses the paint brush analogy to describe these imbalances in price action. To understand this analogy you must know what a fair value gap is. (Thread on this coming in the near future)
Imagine painting a wall. You dip your roller in the paint
tray then start painting the wall with the roller. When you first roll it up and down the paint is uneven since you just dipped it in the paint tray. The uneven paint on the wall is compared to the price imbalance which is your fair value gap. In order for you to even out the paint on the wall you have to roll back and forward until it's even.
When you roll back and forward to even out
the paint this is compared to how price retraces back to fair value gaps at some point in time to rebalance price.
If this thread helped, please like and retweet for more
educational threads & content & for others to see! Thank you.
These pages were created and arranged by Rattibha
services (https://www.rattibha.com) The contents of these pages, including all images, videos, attachments and external links published (collectively referred to as "this publication"), were created at the request of a user (s) from Twitter. Rattibha provides an automated service, without human intervention, to copy the contents of tweets from Twitter and publish them in an article style, and create PDF pages that can be printed and shared, at the request of Twitter user (s). Please note that the views and all contents in this publication are those of the author and do not necessarily represent the views of Rattibha. Rattibha assumes no responsibility for any damage or breaches of any law resulting from the contents of this publication.