$OM Why This Present Situation Could Be The Final Chance To Enter
But let's understand Fair Value Gap first.
Because analysing it on the weekly chart explains the concept in a way better manner.
So what is Fair Value Gap?
📊 FVG is a situation when price moves up or down in an insane amount creating huge candles. Now FVG are of two types:
1. Bullish FVG 📈
2. Bearish FVG📉
Usually in such situations the price moves so rapidly, it doesn't give any time to the buyers/sellers to counteract the move creating an imbalance in the market.
📢 Here, I'll explain the bullish FVG because Om was in uptrend, the price retraced and now moving sideways with slight hint of weakness. So, the sellers will naturally retest this zone.
🖍️ You can mark a FVG by simply marking the candle's top wick before the big move to the candle's lower wick after the big move.(Look for the green box on the chart).
Now for the FVG to be valid & justified, the price needs to hit the support (upper trendline) and must close outside the box or even inside the box but above the next support level.
Result: A reversal from this point which will result in renewed bullish sentiments and the price will skyrocket.
📈 Here, Om is moving sideways for more than 6 weeks after hitting an ATH of $1.046 and still trading below the 7 DMA(daily moving avg.) The support at $0.63 has been solid with $0.6 following next.
Now using the bollinger band on this chart what I see from here is that it may take support on the middle band which acts as 20 DMA. Now this phenomenon could happen either inside or even outside the box. And for that the final support will be $0.54 which is the upper trendline of the box.
Though on the daily time frame the reversal has been good today. But the weakness is still prevalent on the weekly chart.
So, there could be two scenarios:
1. A reversal from this point.
2. Continued retracement and support on the FVG box.
And the latter one has the maximum chances to occur.
