Search found 7 matches

by Ali
Sat May 18, 2024 6:03 am
Forum: Supply and Demand Trading
Topic: Real-life examples of fair value gap
Replies: 0
Views: 15

Real-life examples of fair value gap

Example 1: Wind filling empty spaces in our environment You must have often seen the wind filling the empty spaces or low air pressure areas. Wind moves from high-pressure areas to low-pressure areas or empty spaces. In the same way, price moves towards the fair value gaps or empty spaces to restor...
by Ali
Sat May 18, 2024 5:33 am
Forum: Supply and Demand Trading
Topic: How do you draw a fair value gap zone on the candlestick chart?
Replies: 0
Views: 24

How do you draw a fair value gap zone on the candlestick chart?

A fair value gap acts as a space that the market wants to fill sooner to maintain balance. So, a fair value gap zone is the region that remains valid until price fills that region. So, to draw an FVG zone on the candlestick chart so you can use it for trade analysis, you will have to follow a few st...
by Ali
Sat May 18, 2024 5:23 am
Forum: Supply and Demand Trading
Topic: How do we identify the Fair value gap in the candlestick chart?
Replies: 0
Views: 24

How do we identify the Fair value gap in the candlestick chart?

To find the fair value gap on the candlestick chart , you can easily follow these practical steps: Look for a big candlestick on the chart with a big body and small upper or lower shadows. It should resemble the shape of a marubozu. Now check the highs and lows of previous and prior candlesticks to ...
by Ali
Wed May 15, 2024 4:07 pm
Forum: Supply and Demand Trading
Topic: What is the fair value gap, and what are its types? 
Replies: 0
Views: 112

What is the fair value gap, and what are its types? 

A fair Value Gap is an indicator that shows the difference between the current and fair prices of a financial asset in trading. It is also denoted by FVG.  fair-value-gap-explained.jpg There are two types of FVG in trading, depending on the current price of a stock or financial asset. 01. Undervalue...
by Ali
Wed May 15, 2024 4:00 pm
Forum: Supply and Demand Trading
Topic: Why do traders use fair value gaps in trading?
Replies: 0
Views: 112

Why do traders use fair value gaps in trading?

The fair value gap acts as a magnet 🧲 to pull the prices in the market.  When an overrated FVG forms on the chart, the gap attracts the price downwards until the price fills the gap.  On the other hand, when an Undervalued FVG forms, the gap attracts the price upward until it achieves its fair value...
by Ali
Wed May 15, 2024 3:47 pm
Forum: Supply and Demand Trading
Topic: How to identify demand Zone on chart?
Replies: 0
Views: 118

How to identify demand Zone on chart?

To find the demand zone on the candlestick chart, you need to understand two price patterns that represents the formation of demand zone on the chart. Rally base rally Drop base rally When these two patterns form on the candlestick chart, then it means that buyers want to buy from the demand zone to...
by Ali
Mon May 13, 2024 5:37 am
Forum: Supply and Demand Trading
Topic: What is Rally Base Rally in Trading?
Replies: 0
Views: 284

What is Rally Base Rally in Trading?

Rally Base Rally refers to a demand zone that forms when a price rally (price increase) is followed by a base region (price consolidation), and then another price rally occurs on the candlestick chart. It is also denoted by RBR. When the Rally Base Rally pattern forms on the chart, it means that bu...