EDUCATIONAL POST: (FVG - Fair value Gap) ππ
Let's take some time to explain a trading term I often use in my TA. π€
FVG - or Fair Value Gap (= inefficiency, void...)
π What they mean by that is an area of the chart where the price moved past in just 1 single candle, meaning the candle before + after haven't touched this area.
π This is how such a gap is formed.
π This gap frequently works as a magnet for the future price, indicating a CONTINUATION (bullish β> bounce, bearish β> drop)
NOTE: this is the strongest on the first touch it does, after that it's power deminishes and price often moves back through it.
EXAMPLE: (bullish) price moves up fast and creates a FVG. This area will act as a bounce area for when the price drops back down to this, before continuing higher. I've added a theoretical + $BTC example. (scroll back to see it on the chart)
Hope you learned something. π
Oli π€
Let's take some time to explain a trading term I often use in my TA. π€
FVG - or Fair Value Gap (= inefficiency, void...)
π What they mean by that is an area of the chart where the price moved past in just 1 single candle, meaning the candle before + after haven't touched this area.
π This is how such a gap is formed.
π This gap frequently works as a magnet for the future price, indicating a CONTINUATION (bullish β> bounce, bearish β> drop)
NOTE: this is the strongest on the first touch it does, after that it's power deminishes and price often moves back through it.
EXAMPLE: (bullish) price moves up fast and creates a FVG. This area will act as a bounce area for when the price drops back down to this, before continuing higher. I've added a theoretical + $BTC example. (scroll back to see it on the chart)
Hope you learned something. π
Oli π€