First of all, let me tell you i am new to trading. However, i have several questions.
Look according to the image, i have black (selling) and white (buying) candles sticks, 1 hour time frame. Then, i have some questions.
highlighted in Yellow. is it a fair value gap?. Then, there is wick marked in yellow. It passed through the whole FVG, right? what happened in there? is my FVG wrong?
Highlighted in Red. Is it a demand zone?. Then, there is wick marked in red crossing the demand zone. It passed through the demand zone, right? is that demand zone right?
Highlighted in Green. Is it a demand zone?. Then, if that’s correct. Therefore, exist an overlapping with the demand zone highlighted in red, (considering that red zone is a demand zone). The overlapping is marked in black, What should i do?.
Highlighted in Orange. Is it a FVG?. Then, the wick marked in orange affects the FVG?
Finally, if i have a buying pressure then a FVG is created (considering that such FVG is right). Later after hours or days the selling pressure begins, then the candles stick must fill the FVG right?, but What happens if the wicks crosses down the FVG but the body stays in the FVG? (The sketch is in black).
No, the FVG was correct, but here the price/candlestick disrespects and surpasses more than 50% area of FVG, so there is more probability of trend reversal.
You can say it is a demand zone, but the Red line near the Wick is called a Sellside Liquidity Sweep (SSL) or Stoploss hunt/fake breakout. Whereas the next Bullish Candle’s body and lower wick represent the SSL area, SnD, and SnR Zone.
This is a consolidation area from where the price may break out to upward or downward.
Wait for the confirmation that the price may break out the sideway market. But, double-check to avoid any trap of fake/false break out.
Yes, it is a Bullish FVG printed on the chart after the break out of the sideway market. No the wick marked in orange won’t affect the FVG
When the price of an asset is overvalued or undervalued, then an imbalance is created between the buyers and sellers (demand and supply), and the market rebalances it by filling the gap.
Not necessary, sometimes the price moves upward or downward without retesting the FVG or filling the gap.
As I mentioned earlier, if the body or wick of a candlestick disrespects or surpasses the 50% area of FVG, there is more probability of trend reversal instead of continuation.
I hope I have answered your questions correctly. But, if I was wrong my apologies.
Let me tell all the things you mentioned, highly matched with the chart. I really appreciated the info.
Everything was clear, just the part on red was not very clear since I don’t know the concepts you previously mentioned. The red zone, I thought it was a demand zone, but you mentioned there is a wick close the red line do you meant the wick from the second bullish candle?. That wick goes much lower than the bearish candle (I trimmed the photo and I didn’t notice it).
One last thing, I saw that demand, supply zone and fvg apply quite nice to 1 hour time frame, but when I go to a lower time frame most of the time the concepts are not respected.
If someone wants to do intraday trading, what strategy, or system needs to be taken into account?
ICT/SMC traders use the FVG concept, so the red color line touching the wicks of bearish and bullish candles, they call it liquidity sweep. The TA and PA traders use the terminologies for it as fake/false breakout or stop-loss hunt.
They also draw the SnD, and SnR zones as you did using two red lines.
The HTF supply, demand, FVG, and all other TA and PA have more weight than LTF. So, a good trader should always align LTF with the HTF signals while trading on LTF.
I am sorry, but I can not suggest you any intraday trading strategy.
To confirm a Fair Value Gap (FVG) or demand zone, look for price reactions like strong bounces or breakouts with high volume. Combine this with confluence from indicators like RSI, moving averages, or trendlines to increase reliability. Always backtest and observe price behavior in real-time to validate these zones.
Thank you very much now, the path seems quite clear. The information was really important, and those details are crucial. i have to be honest. I’ve always been complaining about the market, with the following idea “the market is again ME”. However, i have to be patient and do not rush, just make a clear analysis and understanding.
Thank you so much. When I first started looking into the market and gathering information, I noticed that EMA, RSI, and MACD were commonly used. I saw many people mentioning them, so I started using a combination of EMA, RSI, Volume Range, Stochastic, MACD, Bollinger Bands, and other indicators. However, I struggled to find good entry points and ended up losing money (I know this was my fault, not the indicators). Sometimes, I wonder if less is more, but going too simple might not be the right approach either.
Based on your expertise, could you suggest which key indicators to focus on? As you know, I’m concentrating on supply, demand, and FVG, always keeping an eye on volume. I’ve moved away from using EMA and RSI, but I’m still trying to find the right balance. I’d really appreciate your information.
