A Fair Value Gap (FVG) is a concept used in trading to identify areas of price imbalance on a chart. These gaps occur when there is significant buying or selling pressure, leading to rapid price movements that leave behind gaps on the price chart. Essentially, an FVG represents a zone where the market did not trade efficiently.
Historical chart data can show that price has a tendency to dip back into these FVGs before the continuation of the overall trend. FVGs can be found on all time frames and can be used as a form of support and resistance.
When price dips into these Gaps, that is the opportune time to enter a trade, allowing you to have a tight and logical Stop Loss below the FVG (PLEASE ACCOUNT FOR SPREAD).
Historical chart data can show that price has a tendency to dip back into these FVGs before the continuation of the overall trend. FVGs can be found on all time frames and can be used as a form of support and resistance.
When price dips into these Gaps, that is the opportune time to enter a trade, allowing you to have a tight and logical Stop Loss below the FVG (PLEASE ACCOUNT FOR SPREAD).
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.