FVG (Fair Value Gap) – A Hidden Secret to Spot Market Imbalances! ✅
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If you're serious about mastering price action and market structure, Fair Value Gaps (FVG) are something you NEED to understand.
🔸What is an FVG?
A Fair Value Gap (FVG) is the area between two candlesticks where no price action has occurred. This gap often occurs when there’s a sharp price movement, leaving an imbalance in the market that price usually returns to fill.
🔸Why Are FVGs Important?
• Market Imbalance: FVGs show areas where price has moved too fast, leaving gaps behind. These gaps tend to get filled when market conditions return to equilibrium.
• Reversal Points: Often, price will reverse or consolidate around these gaps, giving you potential trade setups.
• Liquidity Pools: FVGs are seen as areas where market makers might fill orders, making them high probability zones for price action.
🔸How to Use FVG in Trading:
• Spot the Gap: Look for areas where price has moved sharply in one direction.
• Wait for Retest: After spotting an FVG, wait for price to retrace and fill the gap.
• Enter with Confirmation: Enter your trade when price starts to show signs of reversal or consolidation around the gap.
📣Pro Tip:
Combine FVG with other indicators like RSI or Volume to confirm whether the gap will fill or the trend will continue.
Bonus:
If you're looking for low risk, high reward setups, FVGs can offer you the perfect entry points when used with trend-following strategies!
Want me to show you a real chart with FVG in action?
Comment ‘FVG Chart’ and I’ll post it next!
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