Mitigation
Last updated
Last updated
Price is attracted to these FVGs. Price will go to these gaps and close them to balance out the market. Examples: Here, we see that a bullish FVG formed, and price was attracted to it. So, it came back down to the FVG and formed lows which broke below the top of the FVG.
Here, we see that a bearish FVG formed, and price was attracted to it. So, it came back up to the FVG and closed above it.
When price comes back to an FVG to close it off, that means that that FVG has been mitigated. Use these FGVs as a guideline to where price wants to go.How this can be programmed:For a bullish FVG: look for 3 candles. The 1st oneโs high should be less than the 3rd oneโs low. The 1st candle should come after a major demand candle/demand zone.To find a demand candle, look for the last bear candle (whose close < open) which came before a major up move.To look for a major up move, check if a smaller zigzag degree does not make small zigzags within a bigger degree zigzag up leg. It should instead be the exact same up leg. (look at this picture & its explanation: Comprehensive Supply & Demand Course)For a bearish FVG: look for 3 candles. The 1st oneโs low should be less than the 3rd oneโs high. The 1st candle should come after a major supply candle/supply zone.To find a supply candle, look for the last bull candle (whose close > open) which came before a major down move.To look for a major down move, check if a smaller zigzag degree does not make small zigzags within a bigger degree zigzag down leg. It should instead be the exact same down leg. (look at this picture & its explanation: Comprehensive Supply & Demand Course)