GAP THEORY Fair Value Gap The gap b/w the 1st and3rd candle. If the 3rd candle closed or consolidated inside the second candle it offers entry with some confirmation on basis of HTF bias Break Away Gap The 3rd candle which closes above or below the 2nd candle confirms the Break away gap(BAG) Buy side:- the 3rd candle body close above the 2nd candle high. Indicates buy side pressure . Sell side:- the 3rd candle body close below the 2nd candle low. On seeing those sell side pressure we mostly (not every time)don't get a pullback into the FVG above
Points to remember Only sell at premium & Buy at the discount. Stick with the HTF bias. Participate during the kill zone. Risk management is the key for a profitable Trader. Strictly 1:2RR