A Thread
- Identify a Target: Start by finding a target on the left side of the chart.
- Locate FVG: Look on the right side for a Fair Value Gap (FVG) to trade off of.
How FVGs are Created:
- Unmitigated Opposing PD Arrays: Understand how these create FVGs.
Types of FVGs:
- RFVG (Rejection Fair Value Gap):
- 🔍 3rd Candle: Rejection.
- 🚫 Trade: This is the worst FVG to trade from.
- PFVG (Pivot Fair Value Gap):
- 🔍 3rd Candle: Consolidation.
- ✅ Trade: This is the best FVG to trade from.
- BAG (Breakaway Gap):
- 🔍 3rd Candle: Expansion.
- ⚠️ Trade: More challenging to trade and requires additional confirmation.
Beginner's Tip:
- Stick to PFVGs: Start with PFVGs for easier practice and better understanding.
Practice:
- 📚 Case Study: Use case studies to practice identifying and analyzing FVGs.