Fair Value Gaps Part 1

Fair Value Gaps Part 1Lesson 5 of 85 min read

Why price returns

In a trend the pullbacks travel back into the empty range, because that is where positions can still be filled.

A gap you can find is only useful if it tells you something about what comes next. This is what it tells you.

An uptrend is higher highs and higher lows. Between the pushes up, price falls back. Those falls are the pullbacks.

A pullback has to travel somewhere. It is not random how far it goes.

Every trend spends part of its time going backwards.

The pullback goes to the empty range

The pullbacks draw back into the range where nothing was resting.

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