How to Trade Fair Value gaps Pt.1 #shorts

27 Jun 2023 · 1 min

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In this short instructional clip, the creator from The Art of Crypto walks through a daily‑chart setup, highlighting a fair value gap (FVG) that coincides with the Fibonacci “golden pocket” range of 0.618‑0.705. He points out that the midpoint of the FVG sits exactly at the 0.618 Fibonacci level, creating strong confluence. Using this alignment, he argues that the market is unlikely to fall to the $17,000 level until it first reaches the $21,000 liquidity zone, which he identifies as a critical support area. The video emphasizes that fair value gaps, as well as zones of relatively equal highs and lows, represent hidden liquidity pockets that the market does not consciously recognize.

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.