Fair Value Gaps Trading Strategy
Spot price imbalances left behind by aggressive institutional buying or selling and use them as high-probability retracement entry zones.
CommunitySign in to join the conversation
Price imbalances can reveal areas where aggressive buying or selling created inefficient price movement.
I find it important to wait for price to revisit the imbalance rather than entering after an extended move.
An imbalance becomes more interesting when it aligns with market structure and the higher-timeframe trend.
Not every imbalance produces a reaction, so confirmation and proper risk management remain essential.
The key is understanding the context behind the imbalance instead of treating every fair value gap as an automatic entry signal.
