TradeSignalos
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Level 2 · Lesson 2 · 1 min read

FVG zones, supply and demand

What an FVG is

A Fair Value Gap is an imbalance: an area price passed through too quickly. When a large player enters with big volume, a long candle appears and leaves a «gap» behind it.

How to find it

Look at three candles in a row. If the high of the first and the low of the third don't overlap, the gap between them on the second candle is an FVG.

How to use it

The market often returns to such zones to fill the imbalance and only then continues.

  • Demand zone: where buyers showed strength. We wait for a pullback down to it to buy at a better price.
  • Supply zone: where sellers showed strength. We wait for a pullback up to sell.

On the website, under «Charts», FVG zones are drawn by the TradeSignalos PRO indicator.