Fair Value Gap on ETH 1D
Fair Value Gap
LongA bullish fair value gap on the daily chart. Here is where it sits and how this pattern has behaved in the past.
Entry sits near $2,684, with invalidation at $2,607. This style holds the full position toward the room near $2,807. A close below $2,607 ends the idea.
Entry sits near $2,684, with invalidation at $2,607. This style books half near the first target around $2,760 and shifts the stop to the entry ($2,684), so the remainder carries no risk. The rest targets the room near $2,807.
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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 1D. Historically this pattern on ETH 1D resolved toward the first target in 5250% of 40 instances before touching invalidation, with an expectancy of +0.10R 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.