Consequent Encroachment – The 50% Level of an FVG
Many traders focus on the boundaries of a Fair Value Gap.
But ICT also introduces Consequent Encroachment (CE).
CE represents the 50% midpoint of an imbalance.
For example, if an FVG extends from 100 to 110, its CE is 105.
Some traders monitor this midpoint for potential price reactions.
It provides another way to refine an entry rather than automatically entering at the edge of an FVG.
Do you prefer entering at the FVG boundary or its 50% midpoint?