Recently, many people have been asking me how to identify market imbalance points.

Actually, this involves a concept called FVG.

Simply put, FVG is the fair value gap. When buying and selling pressure in the market becomes unbalanced, prices will fluctuate significantly, leaving gaps on the chart.
These gaps actually represent areas where the market deviates from fair value and are often where many traders look for opportunities.

On the chart, viewing FVG typically shows a pattern of three candles.
In bullish situations, there will be a gap between the top wick of the first candle and the bottom wick of the third candle; this gap is the FVG.
The same applies for bearish scenarios, just in the opposite direction.
It’s important to note that these gaps should not have overlapping candles; otherwise, they are not considered valid FVGs.

Why should we pay attention to FVG?
The core logic is market self-correction.
These price discrepancies cannot exist forever; the market will eventually return to fair value and then continue developing along the previous trend.
So, FVG actually tells you where the market’s inefficiencies are.

When I analyze cryptocurrency charts myself, I often look for these FVG patterns.
Once identified, you can better understand the market dynamics and potential trading opportunities.
Of course, this is just a technical analysis tool; real trading decisions should also incorporate your own research and risk management. 📈🔍