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The Best FVG

TradingLab

1m 0s197 words~1 min read
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[0:00]The fair value gap, it involves three candles in a specific formation, and if you find the right one, it can give you some great winning trades. But not all fair value gaps are created equal. For instance, this fair value gap worked and this fair value gap didn't work. So, how can we make sure we're only trading successful fair value gap? Like I said earlier, a fair value gap involves three candles. The first candle can literally do whatever it wants. The second candle has to be a sharp move, but the third candle is what we really want to pay close attention to. If the third candle does a bullish break above the second candle and closes like this, that means the move will probably keep continuing higher without coming back down to this gap. So, we really want to stay away from these types of fair value gap. What we're looking for is something like this. Where the third candle is consolidating, this gives price an easy chance to come back down to the gap so we can easily enter once it does. And then we can easily profit from the move up.

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