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The document explains the concept of Fair Value Gap (FVG) in trading, detailing its definition, significance, and methods for identification on candlestick charts. It outlines the importance of FVG in predicting market movements and provides natural analogies to enhance understanding. The article concludes with a summary of key points and addresses common questions about FVG.

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21 views

edited (17)

The document explains the concept of Fair Value Gap (FVG) in trading, detailing its definition, significance, and methods for identification on candlestick charts. It outlines the importance of FVG in predicting market movements and provides natural analogies to enhance understanding. The article concludes with a summary of key points and addresses common questions about FVG.

Uploaded by

jay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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How to identify Fair Value Gap?

forexbee.co/fair-value-gaps

January 25, 2024

Introduction
When it comes to trading, there’s a concept that’s really worth understanding: the Fair
Value Gap, often referred to as FVG. It may seem a bit tricky at first, but it’s actually quite
simple.

In this article, we’re going to explain FVG in simple terms, like we’re talking about a
regular, everyday idea. To make it even easier, we’ll compare it to things we see in
nature. By the end of this article, you’ll understand what FVG is and how you can use it in
your trading. Let’s get into explaining FVG in a way that’s easy for everyone.

Roadmap to understanding the fair value gap


1. What is the Fair Value Gap?
A straightforward definition of FVG and an explanation of ‘fair value’ in trading
terms.
2. The Importance of FVG in Trading
Discussing why FVG is significant for traders, its role in predicting market
movements, and how it can indicate take profit levels, market direction, and
future price predictions.
3. How to Identify the Fair Value Gap on a Candlestick Chart
Explaining the process of identifying FVG on candlestick charts and outlining
the different types of FVG.
4. How to Draw FVG Zone on the Candlestick Chart
A guide on how to visually represent FVG zones on a candlestick chart.
5. FVG as a Market Magnet
Elaborating on how FVG acts like a magnet in the market, influencing prices to
move towards it and discussing the concept of market balance.
6. Natural Analogies to Understand FVG
Drawing parallels between FVG and natural phenomena to help readers
intuitively grasp how FVG works in trading.
7. FVG and Price Movement
Explaining the relationship between FVG creation and subsequent price
movement, and the significance of aligning trading setups with FVG.
8. FAQs
Addressing common questions about FVG
9. Conclusion
Summarizing the key points of the article and the importance of FVG in
trading.

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