Don't automatically short a bearish fair value gap. Where it forms matters: at a range low, it might signal a short, but within a larger range with prior lows, it could be a long setup anticipating a bounce.
What would your advice be to those people out there who in this scenario really should be looking at longs into this fair value gap, but instead they're actually focusing on trying to short from this fair value gap? Yeah, if this is a previous monthly low, you can imagine like probably been running lower and lower and lower for a very long time. But if this is the previous low, this is our range. If we go lower, that bearish fair value gap is appearing at the low end of the range. Whereas, you know, let's say we took out a previous monthly low. Yeah, but in the overall range, maybe the range is much bigger. Maybe there's more previous monthly lows that is creating a much larger range. If we're expecting maybe that previous monthly low to just get taken out, trade higher into that bearish fair value gap, and then trade lower. It has to make sense from a context perspective. So you— depending where that fair value gap forms is very important.
