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ICT Fair Value Gap (FVG) | BISI & SIBI FVG | Valid vs Invalid FVG in ICT SMC |ICT FVG + Liquidity  FVG in ICT SMC – Complete Guide (Valid, Invalid, BISI, SIBI & How to Trade) In ICT / SMC (Smart Money Concepts) trading, Fair Value Gaps (FVGs) are one of the most powerful price delivery tools. They show imbalance in the market — areas where price moved aggressively and left inefficiencies behind. The concept is popularized by Michael J. Huddleston (ICT – Inner Circle Trader). 1️⃣ What is a Fair Value Gap (FVG)? A Fair Value Gap is a 3-candle pattern: Candle 1 Candle 2 (strong displacement candle) Candle 3 If the high of candle 1 and the low of candle 3 do not overlap, an imbalance is created. 🔹 Bullish FVG Low of Candle 3 》 High of Candle 1 🔹 Bearish FVG High of Candle 3《 Low of Candle 1 This creates a “gap” in price delivery. 👉 ICT says price often returns to rebalance these inefficiencies before continuing. 2️⃣ BISI & SIBI Explained 🟢 BISI (Buy Side Imbalance Sell Side Inefficiency) Forms in bullish displacement Price likely to retrace into it Acts as support Used for buy setups 🔴 SIBI (Sell Side Imbalance Buy Side Inefficiency) Forms in bearish displacement Price likely to retrace into it Acts as resistance Used for sell setups 3️⃣ Valid vs Invalid FVG ✅ Valid FVG A valid FVG has: ✔ Strong displacement candle ✔ Break of market structure (BOS) ✔ Liquidity taken before forming ✔ In premium/discount zone ✔ Aligns with higher timeframe bias Strong FVGs form after: Liquidity sweep Market structure shift Order block mitigation ❌ Invalid FVG An FVG is weak or invalid when: ✖ Forms in consolidation ✖ No displacement ✖ No liquidity sweep ✖ Against higher timeframe bias ✖ Immediately filled completely If price trades fully through the FVG aggressively, it's likely invalid. 4️⃣ How to Trade FVG (ICT SMC Model) Step 1: Identify Higher Timeframe Bias Use daily / 4H: Bullish bias → look for BISI Bearish bias → look for SIBI Step 2: Wait for Liquidity Sweep Equal highs taken (for sells) Equal lows taken (for buys) Previous day high/low swept Step 3: Look for Displacement Strong move creating FVG + Break of Structure. Step 4: Entry Model 🔵 Aggressive Entry Enter at: 50% of FVG (consequent encroachment) Or full gap fill Stop Loss: Below/above FVG Target: Opposite liquidity External range liquidity 🔵 Conservative Entry Wait for: Price to tap FVG Lower timeframe confirmation (MSS + small FVG) 5️⃣ FVG + Premium & Discount In ICT dealing range: Discount (below 50%) → Look for bullish FVG Premium (above 50%) → Look for bearish FVG This increases probability. 6️⃣ Advanced FVG Concepts 🔹 Consequent Encroachment (CE) The 50% level of FVG. Very powerful reaction point. 🔹 Inversion FVG (IFVG) When bullish FVG gets violated, it can flip to resistance. When bearish FVG gets violated, it can flip to support. 7️⃣ High Probability FVG Setup Best setup combination: Liquidity Sweep Market Structure Shift Displacement FVG in premium/discount Targeting external liquidity That’s institutional footprint. 8️⃣ Common Mistakes ❌ Trading every FVG ❌ Ignoring higher timeframe ❌ Trading during low volume session ❌ No liquidity concept ❌ Using FVG without structure 9️⃣ Simple Example (Bullish Model) Equal lows form Lows get swept Strong bullish displacement FVG forms Price retraces into FVG Entry -  Target previous high That’s clean ICT model. 🔥 Final Advice FVG alone is NOT a strategy. It is a delivery algorithm footprint. Combine it with: Liquidity Market Structure Time & Session Premium/Discount Order Blocks Master this and your entries become sniper. #ICT  #SMC  #FairValueGap  #FVGTrading  #smartmoneyconcepts
ICT Fair Value Gap (FVG) | BISI & SIBI FVG | Valid vs Invalid FVG in ICT SMC |ICT FVG + Liquidity FVG in ICT SMC – Complete Guide (Valid, Invalid, BISI, SIBI & How to Trade) In ICT / SMC (Smart Money Concepts) trading, Fair Value Gaps (FVGs) are one of the most powerful price delivery tools. They show imbalance in the market — areas where price moved aggressively and left inefficiencies behind. The concept is popularized by Michael J. Huddleston (ICT – Inner Circle Trader). 1️⃣ What is a Fair Value Gap (FVG)? A Fair Value Gap is a 3-candle pattern: Candle 1 Candle 2 (strong displacement candle) Candle 3 If the high of candle 1 and the low of candle 3 do not overlap, an imbalance is created. 🔹 Bullish FVG Low of Candle 3 》 High of Candle 1 🔹 Bearish FVG High of Candle 3《 Low of Candle 1 This creates a “gap” in price delivery. 👉 ICT says price often returns to rebalance these inefficiencies before continuing. 2️⃣ BISI & SIBI Explained 🟢 BISI (Buy Side Imbalance Sell Side Inefficiency) Forms in bullish displacement Price likely to retrace into it Acts as support Used for buy setups 🔴 SIBI (Sell Side Imbalance Buy Side Inefficiency) Forms in bearish displacement Price likely to retrace into it Acts as resistance Used for sell setups 3️⃣ Valid vs Invalid FVG ✅ Valid FVG A valid FVG has: ✔ Strong displacement candle ✔ Break of market structure (BOS) ✔ Liquidity taken before forming ✔ In premium/discount zone ✔ Aligns with higher timeframe bias Strong FVGs form after: Liquidity sweep Market structure shift Order block mitigation ❌ Invalid FVG An FVG is weak or invalid when: ✖ Forms in consolidation ✖ No displacement ✖ No liquidity sweep ✖ Against higher timeframe bias ✖ Immediately filled completely If price trades fully through the FVG aggressively, it's likely invalid. 4️⃣ How to Trade FVG (ICT SMC Model) Step 1: Identify Higher Timeframe Bias Use daily / 4H: Bullish bias → look for BISI Bearish bias → look for SIBI Step 2: Wait for Liquidity Sweep Equal highs taken (for sells) Equal lows taken (for buys) Previous day high/low swept Step 3: Look for Displacement Strong move creating FVG + Break of Structure. Step 4: Entry Model 🔵 Aggressive Entry Enter at: 50% of FVG (consequent encroachment) Or full gap fill Stop Loss: Below/above FVG Target: Opposite liquidity External range liquidity 🔵 Conservative Entry Wait for: Price to tap FVG Lower timeframe confirmation (MSS + small FVG) 5️⃣ FVG + Premium & Discount In ICT dealing range: Discount (below 50%) → Look for bullish FVG Premium (above 50%) → Look for bearish FVG This increases probability. 6️⃣ Advanced FVG Concepts 🔹 Consequent Encroachment (CE) The 50% level of FVG. Very powerful reaction point. 🔹 Inversion FVG (IFVG) When bullish FVG gets violated, it can flip to resistance. When bearish FVG gets violated, it can flip to support. 7️⃣ High Probability FVG Setup Best setup combination: Liquidity Sweep Market Structure Shift Displacement FVG in premium/discount Targeting external liquidity That’s institutional footprint. 8️⃣ Common Mistakes ❌ Trading every FVG ❌ Ignoring higher timeframe ❌ Trading during low volume session ❌ No liquidity concept ❌ Using FVG without structure 9️⃣ Simple Example (Bullish Model) Equal lows form Lows get swept Strong bullish displacement FVG forms Price retraces into FVG Entry - Target previous high That’s clean ICT model. 🔥 Final Advice FVG alone is NOT a strategy. It is a delivery algorithm footprint. Combine it with: Liquidity Market Structure Time & Session Premium/Discount Order Blocks Master this and your entries become sniper. #ICT #SMC #FairValueGap #FVGTrading #smartmoneyconcepts

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