A constructed bearish morning example with higher-timeframe context, an untouched destination and an illustrated gap return. No trade outcome or measured edge is shown.
Watch on YouTube ↗A clean fair value gap can appear after price has already travelled most of the distance you wanted to trade. This morning Silver Bullet example starts with direction and a destination. The gap locates a possible entry within that larger idea.
The source uses bearish four-hour structure and an untouched prior-day low below price. That low is a possible destination selected before entry. Earlier lows can attract exits or new buying as well as selling interest, so reaching one is uncertain. Its usefulness here is that the plan can judge available room before risking money.
Use the New York clock correctly
The morning window is 10-11 a.m. New York local time. Both the gap formation and the entry must occur inside that window under this model. A gap that formed earlier, or a return that first becomes eligible after 11, doesn't qualify just because the chart looks similar.
Use the America/New_York time zone, including daylight saving changes. A fixed UTC conversion won't describe the window throughout the year. The regular U.S. stock session opens at 9:30 a.m. New York time; by 10, the first half-hour supplies recent behaviour to assess. The clock narrows the search without creating a setup by itself.
What displacement and the gap show
In the bearish illustration, a strong move down demonstrates progress towards lower prices. Traders call that displacement. It supports the directional idea in this example, but it doesn't prove who sold or whether selling will continue.
The move leaves a three-candle bearish fair value gap: the first candle's low is above the third candle's high. The pattern becomes identifiable after the third candle closes. The middle candle traded through the interval, so calling it a price range that never traded would be inaccurate.
This version waits for a return to the gap midpoint. Buyers may try to recover the decline there, while sellers may use the higher price to act again. The gap locates that test. It doesn't reveal institutional orders or require price to reverse on contact.
Check room at the actual entry
The source places the stop above the formation high with a buffer. It requires enough room towards the untouched low for a target twice the entry-to-stop distance. The destination and the exact target are different references: the earlier low helps assess room, while this example's target comes from its 2R rule.
A late entry can consume the remaining distance. A recovery through the stop reference would weaken the bearish premise. Passing is consistent with the model if the destination is already reached, the room is inadequate or the eligible return falls outside the window.
The source lesson, published October 21, uses constructed, instrument-neutral candles and stops at the illustrated entry. It supplies no realized outcome or win rate. This is one specified version of the concept, not evidence that every gap during the hour has an edge.
The current puzzle library uses hourly candles, which cannot reproduce the five-minute formation and entry timing required here. This guide therefore accompanies the video without a playable Silver Bullet exercise. The fair value gap guide covers the pattern separately.