Been looking into fair value gaps lately. Seems like everyone has a different take on what qualifies as one.
Some say it’s about price imbalances, others focus on time frames.
Not sure which approach makes the most sense.
Anyone here actually trade these successfully?
Traded fair value gaps for about 2 years now. They’re solid for spotting quick moves, especially on 1H and 4H charts.
My best setup is looking for gaps that form during off-hours or weekends. Those tend to fill faster when regular trading resumes.
Don’t just jump in blindly though. I combine them with key support/resistance levels and momentum indicators. Works way better than gaps alone.
Also, be careful with gaps on lower timeframes. Lots of false signals there. Stick to higher timeframes for more reliable trades.
One last tip - keep an eye on upcoming news events. They can mess with gap trades big time. I learned that one the hard way.
Fair value gaps can be useful, but they’re often overblown. In my experience, they work best as part of a broader strategy, not as standalone signals. I’ve had decent results using them on 4H and daily charts to identify potential reversal zones. But they’re not magic - you still need solid risk management and confirmation from other indicators. Don’t get too caught up in the exact definition. Focus more on how they fit into your overall trading plan and risk tolerance. Test different approaches with small positions first. That’s the best way to see what works for your style and market conditions.
Tried fair value gaps. Decent for spotting moves. Not magic though. Test different setups see what clicks.
Fair value gaps can be useful, but they’re not a silver bullet. I’ve had mixed results trading them.
They work best on higher timeframes like 4H and daily charts. Combining them with support/resistance levels and momentum indicators improves accuracy.
Be cautious of gaps on lower timeframes and during major news events. Test different approaches with small positions to find what suits your trading style.
Fair value gaps can be tricky. I’ve tried trading them, but results were mixed. They’re okay for spotting potential reversals, but don’t rely on them alone. Use other indicators too.