Genuine question from newbie here: The area that is called the ‘Fair Value Gap’ is called that for a reason and I’m trying to find out why. Is it because this area is considered ‘fair’ compared to previous areas? What makes this area ‘fair’? From how I understand the word, a fair area is an area that receives the most transactions as buyers and sellers both agree that the price is fair for both parties. If a gap forms over a ‘perceived’ fair area then by definition it should not be considered a fair area (yet). Or is this just an arbitrary name given to a recurring structure found in the market?
It comes with experience which you should rely on. I would suggest you take the fvg in the premium zone if it's a downtrend or the fvg in the discount zone if it's trending upwards. Moreover adding other confluences like breaker, ob, volume imbalance etc has helped me significantly.
Super video thx! But I don't understand why we look at candle one and three for a fair value gap and ignore that there is a candle with price action in between? I don't understand a fair value gap? I know how to identifiy one now because of the vid but the meaning I have no clue to be honest!?
What if the space and everything is the same but theres no wick, for example theres a downtrend FVG and the candle on the top left doesn't have a wick at all........is that fvg still valid?
