Jesse Rogers explains which fair value gaps actually matter in trading. Skip gaps in sideways markets, they fill fast. Trade only the ones that break through swing points, and watch for inversion gaps that signal reversals after taking out a swing point.
Your fair value gaps fail you because you choose the wrong ones. You want to buy every bullish fair value gap and sell from every bearish fair value gap. But enough said, here's how to actually choose the right fair value gaps. First, only trade gaps that break through swing points. Because when a gap moves through structure with force, well, this shows real momentum behind the move. Next, avoid gaps that form when the market is moving sideways. These don't have any real direction, they're just noise and they're likely to get filled quickly. And finally, if you see a gap that takes out a swing point and gets traded through immediately, that's not failure, that's an inversion fair value gap and it's telling you the market is reversing. Now save this post so the next time you're trading fair value gaps, you can come and study this to make sure that they're the right ones. If you want me to walk you through this step by step on my upcoming live class, comment the word class and I'll send you a free ticket before they're gone.
