Support Board
Date/Time: Sat, 23 Nov 2024 03:02:30 +0000
Post From: Fair Value Gap indicator
| [2023-06-15 17:57:16] |
| divinasion - Posts: 6 |
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Just wanted to make a slight correction; in an earlier comment I said that a wick could be considered a gap - I now believe a wick could be considered an inefficiency (provided the wick is not merely rebalancing something). A gap is a kind of inefficiency but an inefficiency is not necessarily a gap.. inefficiencies can be gaps(actual gaps in price), imbalances OR wicks. And if we're going to be thorough, a good FVG indicator should probably highlight ALL inefficiencies... otherwise, the trader should manually identify them so as to not miss any important signals in the chart. I could still be incorrect about the wicks (SMC is very complex) but I think this is closer to the truth. Regarding fair value gaps; for the sake of any future indicators, I have been studying price action and as it stands I am inclined to believe that a fair value gap is considered balanced even if price immediately retraces only 50% then moves away from that price range. It is these kinds of nuances that an indicator might not take into consideration that explain why ICT is against their use. Date Time Of Last Edit: 2023-06-18 16:07:36
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