THIS FVG (Fair Value Gap) /IMBALANCE SECRETS WILL BOOST YOUR WIN RATE AS A TRADER!
Trading Fair Value Gaps have helped me to bounce back from a drawdown in my prop account before, here's what you need to know.
A thread 🧵
Trading Fair Value Gaps have helped me to bounce back from a drawdown in my prop account before, here's what you need to know.
A thread 🧵
What is a Fair Value Gap? A fair value gap (FVG) is a term used to describe the areas of inefficiencies/imbalances of the price of an asset in the market. These inefficiencies can be caused by buying/selling aggressiveness, price usually reacts from them when revisited.
How do you identify FVG/IMB in the market?
It's simple, usually there are 3 candlesticks, the upper candle wick & the lower candle wick fails to close against each other thereby creating a gap in the middle candle.
check out the graphic representations below 👇
It's simple, usually there are 3 candlesticks, the upper candle wick & the lower candle wick fails to close against each other thereby creating a gap in the middle candle.
check out the graphic representations below 👇
In a scenario where the wicks of the lower and upper candlesticks closes against each other, there is no FVG formed
Representions 👇
Representions 👇
Now let's move on to check out for them on the chart.
I said it earlier that price do react from FVGs/IMBs when visited, these reactions are majorly for continuation of trends, retracements & retests of price levels.
I said it earlier that price do react from FVGs/IMBs when visited, these reactions are majorly for continuation of trends, retracements & retests of price levels.
Two scenarios where FVG acted as demand/supply zones, notice how they reacted after the inducement was taken.
Those that waited for the order block below/above missed the move. Sometimes price reacts from FVGs immediately after an inducement is taken.
$xauusd & $Eth
Those that waited for the order block below/above missed the move. Sometimes price reacts from FVGs immediately after an inducement is taken.
$xauusd & $Eth
This current gold $xauusd swing long I'm in, I took the entry from a fair value gap, notice how I also marked out the inducement
Scenarios where fair value gaps reacted at mitigation blocks zones for continuation of trends.
It works like magic for trend continuation especially when the trend is aiming for a higher timeframe liquidity target.
$Eurusd
It works like magic for trend continuation especially when the trend is aiming for a higher timeframe liquidity target.
$Eurusd
To learn more about the use of FVGs as relative to order blocks, visit this thread 👇
Another day I'll talk about inverted fair value gaps and volume imbalance, it'll help you appreciate FVGs more.
I believe you learnt something from this thread, if yes, kindly like & repost the first post for others to learn.
Follow me @lex_consults for more trading insights.
I believe you learnt something from this thread, if yes, kindly like & repost the first post for others to learn.
Follow me @lex_consults for more trading insights.
You can also follow these traders for top notch contents
@Techriztm @Fairy_Trades @neehyeehwah @Starr_gael @aartdtrader @Investor_ruthh @SheEvolves_ @InvestorNnKay @Kelvin_Graph @Kelvintalent_ @TradeWithThanos @Web3_Dad @SDX_Trades @CryptoPlays_ & many others
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@Techriztm @Fairy_Trades @neehyeehwah @Starr_gael @aartdtrader @Investor_ruthh @SheEvolves_ @InvestorNnKay @Kelvin_Graph @Kelvintalent_ @TradeWithThanos @Web3_Dad @SDX_Trades @CryptoPlays_ & many others
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