I noticed an interesting thing on SOL charts lately — the price keeps returning to certain zones, as if it's magnetized there. Today, it's $81.85, and this is a good example of why understanding market imbalances is so important for traders.

We're talking about fair value gaps, or FVG — one of the most underrated concepts in technical analysis. In general, FVG trading is becoming increasingly popular among serious traders, and not without reason. The idea is simple: when the market moves sharply and quickly, it leaves "gaps" in liquidity. This happens during volatility or news events, when the price jumps across levels without normal buy or sell volume.

Technically, an FVG is formed from three candles. In an uptrend, it looks like this: a bearish candle, then a sharp bullish candle, then a neutral or another bullish candle. The low of the second candle remains above the high of the first — that gap is the break. In a downtrend, it's the opposite. And here's the interesting part — the market often comes back to close this gap. It's like an unfinished trade that smart money wants to complete.

Why does this work? Because behind large orders, there's usually quick price movement. But this movement leaves unfilled orders. Large players then return to these zones to complete their positions. That's why FVG trading offers such high-probability entries — the price physically tends to return and fill these gaps.

The advantages are obvious. First, entries have high probability — the price often does come back. Second, the edges of the gap provide natural levels for stop-losses, no need to guess. Third, it works on any timeframe — from minute charts for scalping to daily charts for swing trading.

To avoid manually searching for these zones, I use the Fair Value Gap indicator from LuxAlgo on TradingView. It automatically highlights bullish and bearish gaps, shows which are already closed and which remain open. The key is that the indicator does not repaint. Once a gap is printed, it stays on the chart. It shows FVG in real-time, immediately after the third candle closes, not retroactively.

How to use this? Add the indicator, set the threshold percentage to filter out small gaps, enable smoothing levels for tracking. Then, either wait for the price to fill the gap and look for a reversal, or enter in the direction of the gap as it forms. Both approaches work.

But an important point — FVG is not a cure-all. Sometimes, the price just passes through the gap as if it wasn't there. Especially in trending markets or when macroeconomic news is released. The gap might already be closed on a smaller timeframe, or the momentum is just too strong. So never trade FVG in isolation.

Combine gaps with other tools. For example, with market structure — look for breakouts near the gap. Or with volume profile — FVGs on volume gaps work better. Order blocks also help, especially if they coincide with FVG. RSI or Stochastic can confirm momentum. And don't forget about liquidity — zones with equal highs and lows near the gap often become targets.

A particularly powerful tool is aligning gaps across different timeframes. When a 1-hour FVG is inside a 4-hour gap, it's a high-probability signal. It means multiple market participant layers are active in the same zone. Start with a higher timeframe, mark key gaps, then go lower and look for entries within that zone.

The main tip — just load SOL or another pair on TradingView, enable the LuxAlgo FVG indicator, and watch how the price reacts. You'll be surprised how often these zones act as support, resistance, or launchpads for big moves. It really works. On Gate.io, you can track SOL and other assets in real-time if you want to practice. The main thing — remember, FVG trading is a tool, not a magic wand. Trade smart, combine methods, manage your risks. And then these market imbalances will become your advantage.