Fair Value Gap (FVG)
FVGs are popular among ICT traders. Do you prefer entering at the 50% midpoint of an FVG or waiting for a deeper retracement?
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When trading Fair Value Gaps, many traders prefer the 50% midpoint (often called the equilibrium) for entries because it balances risk and reward, offering a tighter stop loss compared to waiting for a full retracement to the extreme. However, deeper retracements to the discount or premium array often provide higher-probability reactions when aligned with higher-timeframe order flow.
When applying ICT concepts to prop firm evaluations, precision is key. Tighter entries help keep your initial risk small, which is vital for respecting strict daily loss limits and drawdown parameters. Whether you trade forex, futures, or crypto accounts, managing your position size around these institutional levels prevents emotional overleveraging.
How do you filter your FVG entries in live markets? Drop your thoughts below!
A strong mindset is essential during difficult market conditions.
Risk management and emotional control should always go hand in hand.
I believe having a clear plan makes a big difference in trading performance.
