what is FVG?

What is the Fair Gap value in FX, and how do I use it to leverage trades?

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@yokoyi - 4 months ago

Before i discuss Fair Value Gap, please look at this chart, do you notice anything unusual?

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@yokoyi - 4 months ago

You may have noticed that there is a gap on the charts, where there are no candles (meaning no trading took place) however price still moved past it. The Gap is called the Fair Value Gap in trading.

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@yokoyi - 4 months ago
Quoted - yokoyi

You may have noticed that there is a gap on the charts, where there are no candles (meaning no trading took place) however price still moved past it. The Gap is called the Fair Value Gap in trading.

The idea behind FVG is that when you spot one, you can expect that price will go in the direction of the gap to try to fill it and there you have your trading opportunity. You simply trade in the direction of the gap.

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@yokoyi - 4 months ago

Note how price moves to fill the gap in this image

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@karbin - 4 months ago

In my opinion, all ICT concepts are bullshit repurposing of the basic support & resistance stuff.

And overcomplicating these into fancy terminologies, to make a trader feel they are learning something complicated, so they can sell their courses.

Keep it simple. Trading is not about complicated theories, it is about risk control & managing your emotions. Don't overcomplicate it with garbage fancy lingo.