How to trade a fair value gap in crypto (also work in forex)

in #crypto12 days ago

Fair Value Gaps (FVGs) are price imbalances left behind after strong market moves, often between large candles.

In crypto trading, FVGs signal areas where price is likely to return before continuing its trend.
To trade them, identify a strong bullish or bearish candle with no overlap between its wick and the previous one.
Mark the gap, then wait for price to retrace into it. Enter a trade in the original direction once you spot a rejection or confirmation signal (e.g., a bullish engulfing pattern). Use proper risk management and target recent highs or lows. FVGs work best when aligned with market structure and other confluences.