In the crypto trading world, a Fair Value Gap refers to a price gap formed between the closing price of one candle and the opening price of the next. It's one of those phenomena traders keep an eye on.
Why does it matter? FVG helps identify market inefficiencies and pricing imbalances. When such gaps appear, they often signal that the market hasn't fully digested the recent price movement—there's a "gap" in the order flow. Savvy traders use this to spot potential opportunities where the market might correct or fill that void.
Think of it this way: if the market closes at one level and opens significantly higher (or lower) the next period, that space between represents untapped liquidity or unfinished business. Understanding these patterns can give you an edge in reading market sentiment and spotting reversal or continuation signals.
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SnapshotLaborer
· 01-14 15:39
FVG, in simple terms, is spatial arbitrage. The key is execution; not all gaps can be filled.
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CoffeeNFTrader
· 01-14 15:36
fvg is basically just market laziness; smart people rely on this to make a living.
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GovernancePretender
· 01-14 15:29
fvg is like this, those who understand have already been lurking... Basically, it's just about looking at liquidity gaps.
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MEVSandwich
· 01-14 15:27
The FVG concept sounds sophisticated, but in practice, 99% of people still tend to stumble...
**Fair Value Gap (FVG) Explained**
In the crypto trading world, a Fair Value Gap refers to a price gap formed between the closing price of one candle and the opening price of the next. It's one of those phenomena traders keep an eye on.
Why does it matter? FVG helps identify market inefficiencies and pricing imbalances. When such gaps appear, they often signal that the market hasn't fully digested the recent price movement—there's a "gap" in the order flow. Savvy traders use this to spot potential opportunities where the market might correct or fill that void.
Think of it this way: if the market closes at one level and opens significantly higher (or lower) the next period, that space between represents untapped liquidity or unfinished business. Understanding these patterns can give you an edge in reading market sentiment and spotting reversal or continuation signals.