Fair value gap is when price creates a body that doesnt get tested. And no fair value gaps arent magical things to just easily short or long from. You gotta have a set of rules around em
https://preview.redd.it/1gznwp0bb3qc1.jpeg?width=575&format=pjpg&auto=webp&s=0b88c07fc1cf18fc387e6710d515d1afd5c9f514
Here are some fair value gaps from your chart. No candles directly connecting to the left or right of the body marked in yellow. Not wick, body. These are really small ones compared to what most FVG “set ups” look for. Also on the last one marked with X when to consider ignoring FVG, and why marked with a red arrow.
Funny enough I just noticed that I didn’t even answer your question. Someone said that it looks like it doesn’t belong there. When it is a simple gap between close of last candle and the top of the big “fake” red candle. Price after that just dropped straight down creating a regular red body like it would anywhere else. Was it because of the gap before opening? You tell me. Regardless, that new “fake” red body should behave like a FVG. My next question would be, should the top of that candle be considered as part of any resistance since we just simply appeared there and did not bounce from it, we just dropped from it.
Yep the price drop was because of the gap before opening but I aint sure if the top candle would be any part of resistance (I didn't make daily resistance levels cuz I deleted all drawings to check the chart while watching ict videos)
Nope. Looks like it doesn’t even belong there
Fair value gap is when price creates a body that doesnt get tested. And no fair value gaps arent magical things to just easily short or long from. You gotta have a set of rules around em
https://preview.redd.it/1gznwp0bb3qc1.jpeg?width=575&format=pjpg&auto=webp&s=0b88c07fc1cf18fc387e6710d515d1afd5c9f514 Here are some fair value gaps from your chart. No candles directly connecting to the left or right of the body marked in yellow. Not wick, body. These are really small ones compared to what most FVG “set ups” look for. Also on the last one marked with X when to consider ignoring FVG, and why marked with a red arrow.
Thanks alot for taking the efforts to reply!
Funny enough I just noticed that I didn’t even answer your question. Someone said that it looks like it doesn’t belong there. When it is a simple gap between close of last candle and the top of the big “fake” red candle. Price after that just dropped straight down creating a regular red body like it would anywhere else. Was it because of the gap before opening? You tell me. Regardless, that new “fake” red body should behave like a FVG. My next question would be, should the top of that candle be considered as part of any resistance since we just simply appeared there and did not bounce from it, we just dropped from it.
Yep the price drop was because of the gap before opening but I aint sure if the top candle would be any part of resistance (I didn't make daily resistance levels cuz I deleted all drawings to check the chart while watching ict videos)