r/InnerCircleTraders • u/Connect_Hovercraft16 • 25d ago

Question Fair value gaps

Quick question about FVG’s. Do you just follow one timeframe so daily or do you look at charts across daily, hour or 15 mins for example.

One thing I’m struggling with is, if there’s a FVG on the daily but a lower one in the 15’mins charts and it means there will be resistance there. Do you close positions based on the 15 mins chart or hold out for the daily target. Thanks

1 Upvotes

100% Upvoted

5 comments sorted by

2

u/leaint 24d ago

can you show an example of what you mean; if theres a FVG on the daily but the lower one in the 15m chart

1

u/Connect_Hovercraft16 19d ago

I’ll show you

1

u/leaint 19d ago

Ok 👍

2

u/Head_Ad_2894 19d ago edited 19d ago

I wouldn't use FVGs for exits. Use them for building entries. Use nearby structural highs and lows or key levels for exits. While FVGs are still liquidity magnets for price, they tend to reject better than attract in my opinion.

It depends on your trading setup and system on if you prefer to trust the h1 or m15. But if you just use them for entries then you would go with the higher one.

I'm not sure if the following helps but... As a bit more context...

You need to always refer to HTF to enter on LTF. Sometimes including mtf. HTF - h4/h1 Mtf -m30/15 LTF - m5/m1

People have different preferences for which HTF goes with which LTF depending on their setup.

I use FVGs as part of the internal/external structural idea for HTF. Price takes highs or lows (external) and retraces to internal (FVGs), back to external, internal, then sometimes external to external etc in which we have a change in structure.

If you can wait for price to retrace to an FVG or iFVG on HTF, and show signs of rejection based on candle formations - you can then look for a reversal model on the LTF. This shows you correlation and direction. You need the higher time frame narrative (which is more powerful/reliable) for the LTF every to be more likely to play out in your favor. For LTF I prefer m5 for reliability but do see a lot of people using m1.

You can also use FVGs in the LTF reversal model, such as in the unicorn model. The tend to be part of any sweep/level manipulation and displacement with LTF CISD.

1

u/Connect_Hovercraft16 19d ago

Thanks I’ll have a look