Apa itu FVG? | #ICTSimplified eps. 3

Introduction

In this tutorial, we will explore the concept of FVG, or Fair Value Gap, as explained in David Dharmawan's video. Understanding FVG is essential for traders looking to improve their strategies in forex and crypto trading. This guide will break down the key points discussed in the video, providing clear steps and practical advice for incorporating FVG analysis into your trading approach.

Step 1: Understand the Concept of FVG

• Definition: FVG refers to the price range where there is a disparity between supply and demand, creating a gap in price action.
• Importance: Identifying these gaps can help traders anticipate potential price movements and make informed trading decisions.

Step 2: Identify FVG on a Chart

• Select a Trading Platform: Use a trading platform that allows you to analyze price charts effectively.
• Look for Gaps: On your price chart, observe areas where there is a sudden jump in price without any trading activity. These gaps are potential FVGs.
• Mark the Gaps:
  • Draw horizontal lines at the top and bottom of the gap.
  • This helps visualize the range where price may retrace or consolidate.

Step 3: Analyze the Context of the FVG

• Market Structure: Examine the overall market structure around the FVG. Look for:
  • Support and resistance levels
  • Previous price action trends
• Volume Analysis: Analyze trading volume during the gap. High volume may indicate strong interest in that price range, which is crucial for validating the FVG.

Step 4: Plan Your Trade

• Entry Points: Consider entering a trade when the price approaches the FVG.
  • Use limit orders to enter at the desired price level within the gap.
• Setting Stop Loss: Place stop-loss orders below the FVG to minimize potential losses in case the trade does not go as planned.
• Profit Targets: Set realistic profit targets based on recent price action and market conditions.

Step 5: Monitor and Adjust Your Trade

• Stay Informed: Keep an eye on market news and updates that may affect price movements.
• Adjust Your Strategy: Be flexible with your trading strategy. If the market shows signs of reversing, consider closing your position early to secure profits.

Conclusion

Understanding and utilizing Fair Value Gaps can greatly enhance your trading strategy by providing insights into potential price movements. By identifying FVGs, analyzing market context, and planning your trades carefully, you can improve your chances of success in trading. For further learning and updates, consider following David Dharmawan's content on social media or joining his free Telegram group. Happy trading!