Fair Value Gaps and Imbalances

Define a Fair Value Gap (FVG) as a price imbalance

Identify bullish and bearish FVGs on a chart

Explain the significance of consequent encroachment (50% fill of an FVG)

Apply premium/discount context to assess whether an FVG is likely to hold or fill

Identify potential trade entries using Fair Value Gaps as points of interest

Identify potential profit targets using Fair Value Gaps as draws on liquidity