1. Liquidity Grabs: The market often seeks out liquidity—areas where traders have placed stop-losses or pending orders—before making a directional move. These are typically found above highs or below lows.
2. Imbalance Creation (FVG): After liquidity is taken, price often moves impulsively in one direction, creating an imbalance or Fair Value Gap (FVG)—a zone where price moved too quickly and didn’t fully trade both sides (buyers and sellers).
3. FVG as Entry Zone: Once an FVG forms, traders wait for price to retrace into that gap, using it as a high-probability entry point aligned with the new market direction post-liquidity sweep.
2. Imbalance Creation (FVG): After liquidity is taken, price often moves impulsively in one direction, creating an imbalance or Fair Value Gap (FVG)—a zone where price moved too quickly and didn’t fully trade both sides (buyers and sellers).
3. FVG as Entry Zone: Once an FVG forms, traders wait for price to retrace into that gap, using it as a high-probability entry point aligned with the new market direction post-liquidity sweep.
- Category
- Trading Online & Forex Online
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