📘 1. Fair Value Gap (FVG)
🔹 What is it?
A Fair Value Gap occurs when there's an imbalance in price — typically from aggressive institutional buying or selling. On a 3-candle structure:
If Candle 1’s high is lower than Candle 3’s low, the gap between them is an FVG.
🔍 Example:
Candle 1: Bearish candle
Candle 2: Large bullish candle
Candle 3: Small bullish candle
FVG = gap between Candle 1’s high and Candle 3’s low
📈 Why it matters?
Price often returns to fill the FVG before continuing. It offers a high-probability entry zone.
🎯 Strategy:
In uptrends, look to buy when price re-tests a bullish FVG. In downtrends, look to sell when price re-tests a bearish FVG.