📉 Fair Value Gaps (FVG) — Where Price Comes to Rebalance 🧲🧠
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What Is a Fair Value Gap?
A Fair Value Gap is a 3-candle imbalance where price moved too quickly, leaving unfilled orders behind.
Institutions often revisit these areas to rebalance 🧾
It’s not a gap in candles…
It’s a gap in volume and efficiency 🚪
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🔍 How to Spot an FVG:
✅ Look for 3 consecutive candles
✅ Candle 1 and Candle 3 don’t fully overlap
✅ That “gap” = imbalance zone
📌 Example:
• Candle 1 = bullish
• Candle 2 = large bullish
• Candle 3 = price opens above Candle 1’s high → creates FVG
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🧠 Why FVGs Matter:
🔸 Institutions leave “footprints” here
🔸 Price often returns to FVG before continuing
🔸 Acts as hidden support/resistance
🔸 Perfect sniper zones for re-entries and reversals 🎯
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💡 Pro Tips:
1. Direction Matters
• Bullish FVG → price often bounces after filling it
• Bearish FVG → price rejects and drops
2. FVG + BOS
• Look for FVG after structure break → confirms real shift
• Wait for price to revisit FVG = entry point
3. Stack with Liquidity
• If an FVG lines up with a liquidity grab → ultra-high confluence 📈
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📈 Fair Value Gap Strategy:
• Spot a strong move (FVG forms)
• Wait for price to return to fill the gap
• Look for wick + low volume rejection
• Enter in trend direction → Stop beyond gap
• Target next structure level or liquidity pool
⛓ FVG = The link between inefficiency and opportunity
