Jesse Rogers shows why fair value gap trades fail: entering too early. Instead, wait for the gap to form at a key level, then enter on a strong bounce with an engulfing candle. If price enters the gap and trades sideways instead of rejecting it, the gap is low-quality and you should exit.
Your fair value gaps fail you because you enter too early. You see, the problem is that you see the gap and you immediately want to trade it. But here is what actually works. You only need two fair value gap strategies to find consistent winning trades. Number one, you wait for a fair value gap to form at a key level, wait for price to come back, and then you want to see a specific behavior. If price bounces hard away and gives you an engulfing the that's your signal to enter. Because this tells you that the gap is working as intended now and to make money when fair value gaps fail. This brings us to strategy number two. Now let's say price goes into the gap, but it doesn't reject and it actually just starts trading sideways. I'm sure you've seen this happen numerous times, maybe while you're even in a trade and the market's about to go against you. Because when this happens, this actually gives you a new opportunity because the gap isn't high quality and it's not yielding a reaction. And therefore not only can you avoid the losing trade, but you can take another one in the proper direction. If you want to trade this strategy with me at the market. Open comment yes, and I'll dm you an invite to my live trading room.
