Fair value gaps are order flow imbalances, but most traders target the whole visible gap and get wide entries. The speaker shows how to find the hidden imbalance inside the gap using numerical data for tighter entries, smaller stops, and better risk-to-reward.
You've been taught to trade fair value gaps, but no one told you what actually creates them. A fair value gap is just a gap in price. It forms because there was an imbalance in the order flow at that moment. More aggressive buyers or sellers on one side than the other. Moving price so fast it leaves a gap behind. Right. The gap is visible to everyone. The imbalance inside is not. When you trade the entire fair value gap, you're taking a wide entry based on the visible gap that every retail trader in the world can see. And when you identify the actual order flow imbalance inside of that gap with numbers, you get a very much preciser entry, tighter stop, better risk to reward, same trade, completely different execution. If you wanna learn this more in depth, comment charts right below.
