Have you ever wondered why sometimes prices suddenly reverse dramatically?

Actually, most of the time, the answer points to the same thing—imbalance.
Today, I want to explain this logic in the most straightforward way.

I’ve noticed many traders guessing randomly during trading;
but behind market movements, there’s a pretty clear pattern—that is, the so-called Fair Value Gaps (FVG).
Simply put, when prices surge rapidly or plummet sharply, the market doesn’t have time to trade at every price level, leaving some gaps.
And these gaps? They’re like magnets—sooner or later, the price will come back to fill them.

How can you identify them on a chart?
It’s simple—look for a pattern of three candles.
There’s a gap between the first and third candles, and the second candle is completely within that gap.
Green indicates a FVG left by buyers’ strength, red shows traces of sellers’ pressure.
The more intense the impulse, the more attention that imbalance deserves.

Why does the market always return to these areas?
Because, at its core, the market seeks balance.
Untraded zones are where big funds will add positions, hedge, or defend.
In short, FVG is the footprint of major players.

Now, let’s talk about how to use Fibonacci to find the best entry points.
I usually do it like this—first, draw from the swing low to the swing high (in an uptrend), or from the high to the low (in a downtrend).
Then, focus on the 0.5 to 0.618 zone, known as the “Golden Ratio.”
These discount or premium zones are where I wait for opportunities.

What’s the real golden rule?
The best trades often happen when the imbalance just falls within the Fibonacci zone.
The process is: confirm the trend and structure, mark the Fibonacci premium or discount zones, identify FVG within these zones, then wait for a pullback.
Enter at the boundary of the imbalance.
For more precision, switch to smaller timeframes and look for local structure breaks or engulfing signals.

After entering, how do you set stops and targets?
No need to guess—place stops at the edges of the imbalance or order blocks.
Targets should be set toward the nearest liquidity zones, like past highs or lows.
This kind of trade usually offers a risk-reward ratio of 1:3 or better.

Ultimately, combining FVG with Fibonacci turns chaotic markets into a map with clear hints.
If this approach helps you, remember to like and save this, so you can quickly review it next time.