How to trade ICT - FAIR VALUE GAP
Develop by Michael Huddleston also known as Inner Circle Trader for forex trading but it can be also utilized in crypto trading.
Low wick and high wick of 1st and 3rd candlestick must not overlap it's wick and create a gap in between.
This happens when there's an imbalance in the price action that we can take trades increasing our winning chances. When there's a high impact news, that resulted to a impulsive move; surge in buying/selling activity. The gap has unfulfilled orders that the market marker will get that orders. The price will possibly go back to fill the gap.
Criteria:
There must be a sign of rejection at FVG. The must close below 50% of the gap. If the candle did not close above 50% of the gap, there's a possibility that it will continue it's momentum and invalidated the FVG.
More concepts & strategies to follow.
