DM FVG Standalone

3天前

A bullish FVG appears when price moves up strongly, skipping some price levels (green box).

A bearish FVG appears when price moves down strongly, skipping some price levels (red box).

These zones often act as magnets — price tends to return to fill them before continuing in the original direction.

How to Trade Fair Value Gaps
1. Identify the Directional Bias

You can use:

Market structure (higher highs/lows → bullish, lower highs/lows → bearish).

Trendline direction or moving averages.

Higher timeframe FVG alignment (e.g., 1h FVG supports a 5m entry).

Goal: Only look for bullish FVGs in uptrends, and bearish FVGs in downtrends.

2. Wait for Price to Return to the Gap

Once an FVG forms:

Price will often retrace into the gap before resuming its move.

Think of this as the “discount zone” in an uptrend or “premium zone” in a downtrend.

You want to enter at or near the middle of the gap after confirmation.

3. Confirm the Reaction

Look for a reaction as price enters the FVG:

A reversal candle pattern (like an engulfing or pin bar).

A change of character (CHoCH) or mini-structure break.

A rejection wick forming inside the FVG.

This shows that smart money is defending the zone.

4. Entry & Stop Placement

Bullish FVG Setup (buy):

Wait for price to retrace into a green FVG.

Enter long near the middle or bottom of the gap.

Stop loss: below the lower boundary of the FVG.

Target: recent swing high or next bearish FVG.

Bearish FVG Setup (sell):

Wait for price to retrace into a red FVG.

Enter short near the middle or top of the gap.

Stop loss: above the upper boundary of the FVG.

Target: recent swing low or next bullish FVG.

5. Multi-Timeframe Confluence

The Timeframe input lets you plot FVGs from higher TFs:

Example: Apply the script on 5-minute chart but set Timeframe = 1H.

This shows institutional-level imbalances — powerful reversal or continuation zones.

Combine:

1H FVG (higher timeframe bias)

5M FVG (entry refinement)

6. Avoid Choppy Conditions

FVGs work best during:

Strong trends or volatile sessions (London / New York open).
Avoid using them during flat, sideways markets — gaps often overlap and fail.

Quick Strategy Example

Example (Bullish setup):

On 15-minute chart, market is making higher highs → uptrend.

A green FVG appears after a big bullish candle.

Price retraces into the FVG and forms a bullish engulfing candle.

Enter long at midpoint of FVG.

Stop loss below the gap.

Take profit at previous swing high or 2× risk.


Tips

Don’t chase gaps — wait for price to fill or confirm.

Align with structure — FVGs against trend often fail.



Combine with BOS/CHoCH or Order Blocks for institutional confluence.

3天前

版本注释

A bullish FVG appears when price moves up strongly, skipping some price levels (green box).

A bearish FVG appears when price moves down strongly, skipping some price levels (red box).

These zones often act as magnets — price tends to return to fill them before continuing in the original direction.

How to Trade Fair Value Gaps
1. Identify the Directional Bias

You can use:

Market structure (higher highs/lows → bullish, lower highs/lows → bearish).

Trendline direction or moving averages.

Higher timeframe FVG alignment (e.g., 1h FVG supports a 5m entry).

Goal: Only look for bullish FVGs in uptrends, and bearish FVGs in downtrends.

2. Wait for Price to Return to the Gap

Once an FVG forms:

Price will often retrace into the gap before resuming its move.

Think of this as the “discount zone” in an uptrend or “premium zone” in a downtrend.

You want to enter at or near the middle of the gap after confirmation.

3. Confirm the Reaction

Look for a reaction as price enters the FVG:

A reversal candle pattern (like an engulfing or pin bar).

A change of character (CHoCH) or mini-structure break.

A rejection wick forming inside the FVG.

This shows that smart money is defending the zone.

4. Entry & Stop Placement

Bullish FVG Setup (buy):

Wait for price to retrace into a green FVG.

Enter long near the middle or bottom of the gap.

Stop loss: below the lower boundary of the FVG.

Target: recent swing high or next bearish FVG.

Bearish FVG Setup (sell):

Wait for price to retrace into a red FVG.

Enter short near the middle or top of the gap.

Stop loss: above the upper boundary of the FVG.

Target: recent swing low or next bullish FVG.

5. Multi-Timeframe Confluence

The Timeframe input lets you plot FVGs from higher TFs:

Example: Apply the script on 5-minute chart but set Timeframe = 1H.

This shows institutional-level imbalances — powerful reversal or continuation zones.

Combine:

1H FVG (higher timeframe bias)

5M FVG (entry refinement)

6. Avoid Choppy Conditions

FVGs work best during:

Strong trends or volatile sessions (London / New York open).
Avoid using them during flat, sideways markets — gaps often overlap and fail.

Quick Strategy Example

Example (Bullish setup):

On 15-minute chart, market is making higher highs → uptrend.

A green FVG appears after a big bullish candle.

Price retraces into the FVG and forms a bullish engulfing candle.

Enter long at midpoint of FVG.

Stop loss below the gap.

Take profit at previous swing high or 2× risk.


Tips

Don’t chase gaps — wait for price to fill or confirm.

Align with structure — FVGs against trend often fail.



Combine with BOS/CHoCH or Order Blocks for institutional confluence.