Among practitioners it’s typically seen as the gap between your equilibrium or pricing model vs. the market price. You’d use it to understand a new risk premia or see if it’s a legit trade you want to take risk on. It’s always interesting how phrases or words used on the street end up trickling down and morphing into their own thing.
Well, in this thread I'm trying to get at how the plebeian definition of FVG can be applied concretely for entries and exits. That cool with you or should we stick to the more sophisticated "Street" sense of the term?
Some might disagree with this definition, but it's a working one for me; street generally refers to dumb money aka retail. This is the opposite of smart money aka market makers. Institutional entities are big money. Some big money is dumb and some is smart. Some that are dumb think that they are smart. Some that think they are smart aren't so smart when matched up with smarter. Depends on what size of fish you are and what pond you swim in and mostly defined by the peers you are surrounded by. There's a quote, I forget who said it, it went something like, "If I'm the smartest guy in the room, I'm in the wrong room!" To answer your question; your approach is from retail sensibilities, at least not without understanding the concept of Liquidity, how it's provisioned, how it's offered, made and taken. How do I know you have retail sensibilities? Your screenshot and how you've defined an fvg. While it could "technically" be an fvg, it's not preceded by a run on an HTV POI and Liquidity sweep nor is it followed by a move of displacement. Iow, there is no energetic move represented by those block of candles. The large red candle to the right is more like an FVG since it represents more displacement. That one could be a possible one for a short but without much wider view and an axis of time, impossible to really tell. Also You are looking for entries and exits wanting to "get rich quick" without have a deeper understanding of market structure, microstructure, high probability vs low probability market conditions, models that you have built on this understanding and a methodology that applies this knowledge base. Chances are you came across someone attempting to teach these concepts whom themselves don't have a deeper understanding and are generating clickbait content. The answers you are looking for aren't to be found in this forum. That particular vernacular and how you are using it aren't really discussed here. It's more likely to be discussed in on specific twitter timelines, YT, and discos. btw, curious who that is that you're using as an avi
https://trendspider.com/blog/fair-value-gap-basics/ https://www.dogpile.com/serp?q=trading+Fair+Value+Gaps
Hate to break it to you, but I was replying to the other guy whose post was both pompous and unhelpful. Yours was just a bit unhelpful. Am I a beginner? Sure, I announce that upfront every time I post. That doesn't mean I'm a get rich quick idiot, and it's a little presumptuous of you to assume so. Honestly, this is why I only end up posting here every few months or so on average. Not a very welcoming environment. All the same, thanks for the suggestions on how I might increase my understanding of it by looking into HTV liquidity sweeps etc. which I will certainly do. Thanks also for clarifying that you need to speak the right vernacular or you shouldn't bother asking questions here. I didn't see that in the guidelines anywhere, my bad. And my avatar is a drawing of Gustave Flaubert.
My intent wasn't ad hominem, nothing personal. Maybe it was a self-reflection on my part, it's certainly was my attitude in how I came into trading a decade ago. As for being a beginner, it's an asset. I frequently put on my beginner noob hat when exploring new concepts. btw, I mis-spelled HTV, it's Higher Time Frames yeah, it's pretty salty around here, requires a thick skin, use of ignore and block are a necessity. It's the most competitive industry on the the planet.. not a whole lot of kumbaya and rah rah, unless you're in a crypto bull market, then it's up only.. As for Gustave Flaubert, never heard of him, thank you for expanding my mind.