How to Trade Fair Value gaps Pt.1 #shorts

27 Jun 2023 · 1 min

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0:38

In this YouTube short, the speaker analyzes a daily‑chart candle that forms a fair value gap (FVG) and notes that the gap coincides with the 0.618–0.705 Fibonacci "golden pocket". He points out that the midpoint (0.5) of the FVG aligns with the 0.618 Fibonacci level, creating strong confluence. Based on this, he argues that the market is unlikely to fall to the $17,000 level until it first reaches a key resistance around $21,000. He explains that fair value gaps, like areas of relatively equal highs and lows, represent hidden liquidity zones that most participants are unaware of, and these zones can influence price movement.

Chapters

On the daily chart, if you take a look at this candle here, that is what is known as a fair value gap. And not only is that a fair value gap, but that is also a 0.618 to 0.705, which is the Fib golden pocket. Now, just so happens that 0.5 of that fair value gap is right at the 0.618. So that is a lot of confluence. So in my opinion, I think that we do not go down to $17K until we hit $21K. Now, that's a very important level because the fair value gap, just like these relatively equal highs and relatively equal lows, what they represent are areas areas of liquidity, and these are areas of liquidity that nobody knows.