Fair Value Gaps (FVGs) allowed me to go from guessing entry points to precision 📐
here’s a thread on what they are and the key mistakes to avoid: ❌
here’s a thread on what they are and the key mistakes to avoid: ❌
FVGs are when price moves too quick causing an imbalance
it’s a 3 candle pattern
it’s the space between the first and last candle
here’s a bullish FVG and bearish FVG example :
it’s a 3 candle pattern
it’s the space between the first and last candle
here’s a bullish FVG and bearish FVG example :
you want to see price retrace into here for a entry
however you can’t just blindly enter, here’s criteria it must follow:
however you can’t just blindly enter, here’s criteria it must follow:
1.) Liquidity
liquidity has to be taken first
we want to see equal highs eliminated before a bearish FVG is created
we want to see equal lows eliminated before a bullish FVG is created
liquidity has to be taken first
we want to see equal highs eliminated before a bearish FVG is created
we want to see equal lows eliminated before a bullish FVG is created
2.) MSS
the FVG has to be created due to a market structure shift
we want to see lower highs taken out for a bullish FVG to go long
and higher lows taken out for a bearish example to go long
examples:
the FVG has to be created due to a market structure shift
we want to see lower highs taken out for a bullish FVG to go long
and higher lows taken out for a bearish example to go long
examples:
3.) Discount vs Premium
large institutions want to buy at discount and sell at premium , so we need to do the same
draw a fib from the swing low to swing high and the FVG should be under the .5 mark
therefore it’s in a discount and is valid
example:
large institutions want to buy at discount and sell at premium , so we need to do the same
draw a fib from the swing low to swing high and the FVG should be under the .5 mark
therefore it’s in a discount and is valid
example:
4.) Equal Highs/Lows
you don’t want to short with equal highs above
you don’t want to long with equal lows below
the market is drawn to these liquidity points so don’t go against it
you don’t want to short with equal highs above
you don’t want to long with equal lows below
the market is drawn to these liquidity points so don’t go against it
full credit to @DodgysDD I got a lot of this from his page so make sure to follow for high quality education!
Hope this helped someone❗️
Please like/rt if it did! 🙏🏽
Please like/rt if it did! 🙏🏽
Loading suggestions...