🔶Fair Value Gap | FVG Simplified

What are Fair Value Gaps?

What is this about: This explains what Fair Value Gaps are, how to find them and how they are mitigated.Fair Value Gaps are simply gaps in price. They happen when the market is imbalanced (i.e. Either the buying side or the selling side is stronger than the other).An imbalance will be visible to us as a long candle. That candle represents large orders which are one sided (the orders are either on the selling side or the buying side).Price will come back to these areas of imbalance to balance out the market again.

How to find them

Find 3 candles. The wicks of the 1st and 3rd ones should not overlap. The gap that they make is an FVG (i.e. Fair Value Gap).This gap occurs because an aggressive move causes the market not to be offered on both sides fairly.FVGs often occur after a major supply or demand zone.