Rejection FVG
Last updated
Last updated
What is this about: This explains how to look for when price will reject off of an FVG and probably form a reversal.First, find an FVG and find the 50% level in that gap. That is where price usually rejects off of.After finding an FVG, look for other confirmations of a reversal or a rejection off of that gap (like a Breaker Block, Order Block, shelf i.e. range and other internal liquidity structures)Also, pay attention to how price approaches the FVG. It should reach it quickly but not too quick. It should not take too long for price to reach the FVG. It can form a consolidation for 1-2 hours and then it should go to the FVG and react from it.
Examples:
Here, we can see 2 confirmations which let us know that price is going to reject off of the FVG.
Confirmation 1: the breaker block showed that the supply zone turned into a demand zone which means that when price comes back to this zone, it will react from it and go up (which it did).
Confirmation 2: Price broke out of the shelf. The FVG caused price to break upwards out of the shelf because of the large buy orders.
Here we have 2 confirmations that price will reject off of the 50% level of the FVG.
Confirmation 1: the breaker block showed that the supply zone turned into a demand zone which means that when price comes back to this zone, it will react from it and go up. The Breaker Block should overlap with the FVG (which it did)
Confirmation 2: Price broke out of the shelf. The FVG caused price to break upwards out of the shelf because of the large buy orders.
Confirmation 3: We see a demand Order Block. That means that price will likely reject off of that zone.