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Fair Value Gap (FVG) and Liquidity Sweep are concepts used in technical analysis, particularly in the context of market structure and price action:
1. Fair Value Gap (FVG): A Fair Value Gap occurs when there's a significant price jump or drop with little to no trading activity in between, creating a "gap" on the chart. This gap represents an area where price has moved quickly without consolidation, often seen as potential areas for price to revisit or fill before continuing its trend.
2. Liquidity Sweep: A Liquidity Sweep refers to a price movement that briefly reaches above or below a significant level (like a stop hunt or liquidity pool) to grab liquidity (e.g., stop-loss orders) before reversing direction. It's often seen as a way for larger market participants to accumulate or distribute positions before the price moves in their favor.
While both concepts relate to market dynamics, FVG focuses on price gaps and potential areas for price to revisit, whereas Liquidity Sweep focuses on price movements aimed at grabbing liquidity before reversing direction. Both require Patience 🙏......I mean waiting. Can you wait 🙏?
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