Fair Value Gaps (FVG)
Before getting into this, a note. I use Steve Norman’s FVG indicator, and Steve’s tools can be found here. It draws these zones automatically, and while knowing how to identify them manually still matters, in practice I’m not hand-drawing boxes every morning. What is a fair value gap? When price moves fast, really fast, driven by momentum or a large order hitting the market, it sometimes skips through a whole stretch of prices without pausing to trade there, and buyers and sellers never get the chance to meet each other at those levels before the market’s already moved on. ...