Profusio
Fair Value Gaps Part 3

Fair Value Gaps Part 3Lesson 7 of 85 min read

Re-measure the gap

When part of a gap has already been filled, the box gets redrawn around the part price never traded through.

A gap is rarely still the size it was when you drew it. Half of it is often gone before price comes back.

Part of it is already gone

Take the gold gap between 2,404 and 2,412. Two days later a candle wicks down to 2,408 and leaves.

Everything from 2,408 up to 2,412 has now been traded through. Only 2,404 to 2,408 is still an empty range, and only that part is still a reason for price to come back.

Figure 1 · The gold gap with the part above 2,408 hatched out and marked filled, and only 2,404 to 2,408 still shaded as the empty part

Register to access everything for free

The course is free. The account is only there to save your place and let us tell you when new lessons land.