Fair Value Gaps : Everything You Need to Know
A thread🧵
A thread🧵
[1] Introduction
This is a PD array that is one of the most easiest one's to spot visually
This is real support and resistance that works with extreme precision in the market place
Price looks for a fair value to reprice to and these gaps are what price draws towards
This is a PD array that is one of the most easiest one's to spot visually
This is real support and resistance that works with extreme precision in the market place
Price looks for a fair value to reprice to and these gaps are what price draws towards
![[1] Introduction
This is a PD array that is one of the most easiest one's to spot visually
This i...](https://pbs.twimg.com/media/F5VhvSna0AAFbRI.png)
[2] BISI & SIBI
Buyside Imbalance, Sellside Inefficiency or Sellside Imbalance Buyside Inefficiency
Stands for candles that move up aggressively towards a liquidity pool in huge ranges
The difference between an FVG and BISI or SIBI is that an FVG is a small gap comparatively
Buyside Imbalance, Sellside Inefficiency or Sellside Imbalance Buyside Inefficiency
Stands for candles that move up aggressively towards a liquidity pool in huge ranges
The difference between an FVG and BISI or SIBI is that an FVG is a small gap comparatively
![[2] BISI & SIBI
Buyside Imbalance, Sellside Inefficiency or Sellside Imbalance Buyside Ineffici...](https://pbs.twimg.com/media/F5Vi91NboAA_3q5.png)
![[2] BISI & SIBI
Buyside Imbalance, Sellside Inefficiency or Sellside Imbalance Buyside Ineffici...](https://pbs.twimg.com/media/F5VjO6BagAAP-z6.png)
![[2] BISI & SIBI
Buyside Imbalance, Sellside Inefficiency or Sellside Imbalance Buyside Ineffici...](https://pbs.twimg.com/media/F5Vj9FKb0AAtxH0.png)
[3] Balanced Price Range
This is a complicated version of the FVG
A BPR occurs when there two passes of price through the same area of price, you can see it in the visual below
Ideal BPR must act as a brick wall and not let price close inside it or violate 50% closing basis
This is a complicated version of the FVG
A BPR occurs when there two passes of price through the same area of price, you can see it in the visual below
Ideal BPR must act as a brick wall and not let price close inside it or violate 50% closing basis
![[3] Balanced Price Range
This is a complicated version of the FVG
A BPR occurs when there two pass...](https://pbs.twimg.com/media/F5Vk022aAAA3T_U.png)
[4] Violation
Based on my experience, you can consider an FVG to be violated if it closes below C.E i.e 50% level based on the right narrative
Price can close below the FVG if it is looking to trade into an OB below and that is valid
You need to see price in terms of IOF
Based on my experience, you can consider an FVG to be violated if it closes below C.E i.e 50% level based on the right narrative
Price can close below the FVG if it is looking to trade into an OB below and that is valid
You need to see price in terms of IOF
![[4] Violation
Based on my experience, you can consider an FVG to be violated if it closes below C.E...](https://pbs.twimg.com/media/F5VmElJasAAozrM.png)
![[4] Violation
Based on my experience, you can consider an FVG to be violated if it closes below C.E...](https://pbs.twimg.com/media/F5VnCbUawAAzrVp.png)
[5] Imbalance to Rebalance
This is a mechanic of price action as it moves from FVG's to highs/lows and to the FVG's again
You can use the information I provided to train your eyes to see this PDA and know when it is violated and frame your bias accordingly
This is a mechanic of price action as it moves from FVG's to highs/lows and to the FVG's again
You can use the information I provided to train your eyes to see this PDA and know when it is violated and frame your bias accordingly
[6] Conclusion
You can also form a model based on the FVG
Always remember to backtest and forward-test to see how price reacts and develop a good understanding of the same
Likes and RT's are appreciated!
Comment on any other suggestions or queries below👇🏻
You can also form a model based on the FVG
Always remember to backtest and forward-test to see how price reacts and develop a good understanding of the same
Likes and RT's are appreciated!
Comment on any other suggestions or queries below👇🏻
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