FVG Failures: Why the Market Ignores Your Gap ๐
Why some Fair Value Gaps (FVG) don't work? Simple: Liquidity is King. ๐
The FVG says, "Hey, I'm an imbalance, come back to me!" But sometimes the market has a bigger goal. ๐ฏ
That bigger goal is usually a massive pool of liquidity hiding under a recent 1-Hour or 4-Hour candle low (or above a high). ๐ฐ
The market is designed to hunt these big liquidity pools, like a shark chasing prey. The FVG is just a small speed bump in the way. ๐ฆ
So, instead of gently retracing to fill your FVG, the price aggressively blows right through it! ๐จ
It ignores the FVG area because it needs to quickly grab those stop-loss orders (the liquidity) resting below the swing low or above the swing high. ๐
This move is often driven by the Smart Money specifically targeting retail stops before reversing, making your FVG look useless. ๐คฆโโ๏ธ
The lesson is: Always check for a much larger, more obvious liquidity draw on the higher timeframes before trusting a small FVG. Big fish eat little fish. ๐ฃ
