What is a fair Value Gap
What Is a Fair Value Gap? A fair value gap is especially popular among price action traders and occurs when there are inefficiencies or imbalances in the market, or when the buying and selling are not equal. Fair value gaps can become a magnet for the price before continuing in the same direction. Pros and Cons of Fair Value Gaps Like any trading strategy, there are both advantages and disadvantages to fair value gaps. Here are some of the pros and cons: Pros: Profit potential: If a trader can accurately identify a fair value gap and trade on it, they can potentially earn significant profits. Reduced risk: Because fair value gap trading is focused on identifying inefficiencies in the market, it can be less risky than other trading strategies that rely on making directional bets on the direction of an asset’s price movement. Flexibility: This strategy can be applied to a wide range of assets, including stocks, bonds, commodities, and currencies. Co...