讀懂 FVG, 交易賺錢更有效率！只淺出不深入 FVG 與 ICT的 iFVG 用法

Summary

In this video, the Trading Life Channel explains the concepts of Fair Value Gap (FVG) and Inverse Fair Value Gap (iFVG) in price action trading. FVG represents a price discrepancy between candlesticks, often indicating key levels for market reaction. iFVG, the reversal of FVG, occurs when a strong price movement engulfs the gap. The video offers practical examples using NAS100 and Bitcoin charts, showing how traders can use these gaps for entry and exit strategies, improving their trading profitability. The video emphasizes how understanding these gaps can lead to more informed and successful trades.

Takeaways

• 😀 FVG (Fair Value Gap) is a price gap on the chart where the first and third candlesticks do not overlap horizontally with the body of the second candlestick.
• 😀 Identifying an FVG requires looking for three consecutive candlesticks, where the non-overlapping area between the first and third candles forms the gap.
• 😀 iFVG (Inverse Fair Value Gap) occurs when an FVG is later engulfed by a large candlestick in the opposite direction, signaling a potential market reversal.
• 😀 FVG and iFVG are important tools in price action trading that can help identify potential entry and exit points based on price gaps.
• 😀 To identify FVG, check for a gap left by the candlesticks where price moves quickly and leaves an area that will likely react when revisited.
• 😀 FVGs often signal areas of price reaction; when price returns to an FVG zone, it may reverse or continue in the direction of the gap.
• 😀 A proper FVG setup should be observed in conjunction with Fibonacci levels, marking premium and discount zones to determine optimal entry areas.
• 😀 iFVG is a more complex pattern, requiring the reversal of a previous FVG by a strong candlestick engulfing the original gap, indicating potential short opportunities.
• 😀 FVG can be used to find entry points in the market; after an FVG fills, entering in the discount zone can be a high probability trade.
• 😀 The key to using FVG and iFVG successfully is to combine them with market context (such as Fibonacci levels and order blocks) and to manage risk properly in trade setups.
• 😀 Trading strategies using FVG and iFVG can result in highly profitable trades when executed with proper risk management, aiming for large reward-to-risk ratios.

Q & A

What is FVG (Fair Value Gap) in trading?

FVG, or Fair Value Gap, refers to a specific price behavior observed on a candlestick chart where there is a non-overlapping area between the first and third candlesticks in a three-candlestick sequence. This gap indicates a potential reversal or continuation of the price trend, and traders use it to identify entry points in their trades.

How do you identify an FVG on a candlestick chart?

To identify an FVG, you need to observe three connected K-lines (candlesticks). The first and third candlesticks must not overlap horizontally. The non-overlapping area between the first and third candlestick is considered the FVG.

What is iFVG, and how does it differ from FVG?

iFVG stands for 'Inverse Fair Value Gap,' which occurs when the price moves in the opposite direction and 'engulfs' or reverses an existing FVG. Unlike FVG, which signals a potential buying opportunity, iFVG indicates a possible selling or shorting opportunity after the reversal of the original FVG.

What is the significance of the Fibonacci retracement in relation to FVG and iFVG?

Fibonacci retracement levels are used to identify potential entry zones within the FVG and iFVG areas. The levels help determine whether the price is in a discount (buying) zone or a premium (selling) zone, guiding traders on the best areas to enter or exit trades.

How do traders use the Fibonacci retracement tool in conjunction with FVG?

Traders use Fibonacci retracement levels to mark 'discount' and 'premium' zones. For instance, if the FVG occurs in the discount zone (below the 0.5 Fibonacci level), it may signal a potential buying opportunity. Conversely, if it occurs in the premium zone (above 0.5 Fibonacci level), it may signal a selling opportunity.

What does the term 'engulfing' mean in the context of iFVG?

In the context of iFVG, 'engulfing' refers to a price action where a strong candlestick moves in the opposite direction and completely covers or engulfs the previous FVG. This indicates a reversal in price behavior, shifting the original FVG into an iFVG.

What is the role of price action after an FVG or iFVG appears?

After an FVG or iFVG appears, the price tends to react when it returns to the gap area. Traders observe this return as a potential entry or exit point, as the price action in these areas can offer valuable signals for trades.

In practical trading, how can FVG and iFVG help improve profitability?

By recognizing FVG and iFVG areas, traders can enter trades with higher confidence. For example, after an FVG appears, traders may look for a price return to that area to initiate a buy trade. Similarly, iFVG can signal a sell opportunity after the price reverses, increasing the likelihood of profitable trades.

How do traders use multiple FVGs on a chart for decision-making?

Traders may look for multiple FVGs on a chart to gauge price action and potential trade entries. The more FVGs that appear in a specific area, the stronger the potential for a price reversal or continuation when the price returns to those zones.

What strategy did the trader use in the NAS100 example to make a profitable trade?

In the NAS100 example, the trader identified an FVG in the discount zone and used Fibonacci retracement levels to find the optimal entry point. The trader then entered a long position, took profit at a safe level above the FVG, and managed risk by setting a stop-loss at an appropriate level.