G’evening people!
Yesterday we learnt about the Key levels and How to located them. Today Im gonna drive you guys deeper into another one to find the good entries in trading. That is Order Block and FVG ( Fair Value Gap)
So let’s start with Order Block
What is it? An order block typically refers to a specific area on a price chart in trading, where significant buy or sell orders are clustered. Traders often use order blocks to identify potential support or resistance levels. These levels can influence future price movements as they indicate areas where a large number of orders were executed in the past.
Or in orther way, I might say Order Block is the areas that we look for the opposite candle before the move that broke of structure
Let’s have a look at the pic below to see it clearly
Next question would be how to know if it is a Valid or Invalid Order Block, check out the pics below and you will see
It is time to talk about FVG (Fair Value Gap)
FVG which as also known Imbalance. In trading, "FVG" can stand for "Fair Value Gap." This refers to the difference between an asset's current market price and its perceived fair value. Traders may analyze this gap to identify potential trading opportunities based on whether they believe the asset is overvalued or undervalued relative to its fair value.
Take a look at the pics below then
In a chart you might find a lot of FVGs, so I have pics for you guys to have a look and see which FVG should be considered as the priority one.
So, in an Up trend, the lowest FVG is the strongest and opposite for the Downtrend.
Price normally pullback to fulfill these FVGs,we might then seek a chance to enter the market, combine with our key levels in order to set SL and TP.
(There will be another post about the Valid and Invalid FVG)
Bonus here is a photo to end the topic about Order Block and FVG. Next time I will be writing about how we enter the market when we have Main key level and sub key level.
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Thank you!
