Been hearing about fair value gaps lately, but it’s not clicking. Tried watching some YouTube videos, still confused.
Seems like everyone has a different take on it.
Anyone got a straightforward explanation that actually makes sense in real trading?
Fair value gaps are just big price jumps between candles. Some traders think price might come back to fill them. I’d stick to basics like support and resistance instead of chasing every new pattern.
Fair value gaps are simpler than most make them out to be. They are just a significant price jump between two candles, leaving an empty space on the chart. Traders see these gaps as areas for price to return and fill. Don’t get caught up in the buzz. These gaps are just one tool among many. Focus on price action, support and resistance, and stick with your proven strategy. If the gap fits with your overall plan, consider it. If not, ignore it and rely on your system.
Fair value gaps are just big price jumps between candles. Some traders think price will come back to fill these gaps.
I wouldn’t obsess over them though. They’re one pattern among many. I prefer focusing on solid support/resistance levels and overall trends.
Use gaps if they fit your strategy, but don’t force it.
Gaps between candles. Price might fill them later. Nothing special really. Just another chart pattern to watch.
Fair value gaps are overhyped, in my experience. They’re just big price jumps between candles that some traders think will get filled later.
I’ve tested trading these gaps for months. Results were mixed at best. Sometimes price came back to fill them, other times it just kept going.
Found more consistent profits focusing on major support/resistance levels and strong trend moves. Those are easier to spot and tend to play out more reliably.
If you want to use fair value gaps, combine them with other signals. Don’t trade them in isolation. And always use proper risk management - gaps can trap you if you’re not careful.
Ultimately, there’s no magic indicator. Solid risk control and reading price action matter way more than chasing the latest ‘hot’ pattern.