Entry:
1. -FVG reaction
2. Trend continuation
Identification of FVG:
FVG (Fair Value Gap) refers to a price area where there has been a gap between the closing prices of candles, indicating an imbalance between supply and demand. Typically, it consists of three candles: the first is bearish, the second is bullish, and the third is also bullish, with the low of the third candle not reaching the high of the first.
Induction:
The first candle in the FVG formation often results from induction, where sellers require sell orders to open long positions. This scenario may be linked to breaking through psychological support or resistance levels.
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