Fair Value Gap on ETH 12H
Fair Value Gap
ShortA bearish fair value gap on the 12-hour chart. Here is where it sits and how this pattern has behaved in the past.
Entry sits near $2,406, with invalidation at $2,426. This style holds the full position toward the room near $2,303. A close above $2,426 ends the idea.
Entry sits near $2,406, with invalidation at $2,426. This style books half near the first target around $2,385 and shifts the stop to the entry ($2,406), so the remainder carries no risk. The rest targets the room near $2,303.
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Not financial advice, and never a buy or sell call. Past performance does not predict future results. See how these numbers are computed.
What formed
A Fair Value Gap formed on ETH 12H. Historically this pattern on ETH 12H resolved toward the first target in 4440% of 72 instances before touching invalidation, with an expectancy of -0.04R per instance. This is descriptive analysis of a chart structure, not personalized guidance.
A fair value gap, or imbalance, is a three-candle pattern where the middle candle moves so fast that the wicks of the first and third candle don't overlap, leaving a small untraded gap in price. Because that range was skipped, price often returns to rebalance it before continuing.
It appears during sharp, one-directional moves, often off news or a liquidity grab. The faster and larger the displacement, the bigger the gap. Gaps that sit alongside an order block or a key level tend to matter more than isolated ones.
Other fair value gap formations
FAQ
Related
- ConceptOrder BlockThe last opposing candle before a strong, imbalanced move, a zone price often reacts to on the return.
- ConceptLiquidity SweepA sharp push past an obvious high or low that grabs resting stops, then quickly reverses.
- ConceptBreak of StructureA decisive close beyond the most recent swing point in the trend direction that confirms continuation.