Using Fair Value Gaps to find A+ entriesA 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).