if you think you know enough about Fair Valley gaps then take a look at those three types of fair Valley Gap are they the same if you think so then make sure to watch the video till the end as I'll explain how they are actually not not all fair value gaps are the same and each one will tell you another story let's get into the video full of secrets now a lot of people claim that they know enough about Fair Val gaps or they know a lot about Fair Val gaps however in the reality they almost know nothing but that a fair Valley Gap is a three candle pattern and everyone knows this so from this candle all the way to this candle from the first to the third we have a gap here where the wigs do not overlap and that's something that is very clear and almost everyone knows about however what we're going to be doing today is focusing on the third candle of the fair valy Gap a lot of people don't know this but the third candle actually tell you A big story about what's going to happen it's going to actually answer a lot of question for example will price retrace back to the fair valy gab will the fair Valley Gap hold or how the reaction of the fair Valley gab will be all of those questions are going to be answered by one specific candle which is going to be the third candle of the fair value G now starting with this a very significant pattern of a fair value Gap however it happens not always but I want you to stay away from it okay because if you trade this specific type of fair value Gap note that the probability of price filling this Fair valy Gap is going to to be much lower so much lower than your normal fair value Gap so what is the first one it's when we have for example a big candle with a displacement however just focusing on the third candle what do we see here this was the first candle second candle going up and then third candle creating this Fair Valley Gap now the question is and think about it with me why did this Fair Valley Gap was not filled and even when it was happening I knew that it's not going to be felt only for one reason you see the third candle the wick of the Third cand CLE how does it look price rejecting to the upside already and price closed above so there was already a rejection happening and then there was already a lot of buy momentum to the upside and there is no time for price to come lower all the way to the fair Valley Gap to go up again price did not have time to do that the market did not have time to do that however if we go to the lower time frame we're going to have another picture so going for example to the 1 hour or let's start with 5 minutes right so going to 5 minutes we're going to see one thing here this was the Fair Valley Gap here what happened on that week it was actually price coming to those Fair Valley gaps on the row time frame so price came here already sing liquidity going up that's where the projection happen so a lot of the time when we have a fair value gap on a specific time frame where the third candle of the fair Valley Gap already rejected with a high momentum to the upside and then closed above in a bullish way then we expect this Fair Valley Gap not to be filled most likely so that's the situation here now if you go to 1 hour it's going to be more clear what happened is we had another F Val gap on the 1 hour that was already filled so what's the point of filling that 4our fair Valley Gap again the reaction of this or the rejection of this scandle was already a mitigation of a fair value and then we started going up so a lot of the time just simply know that your probability of fair valy Gap being filled when there is already a projection when there is already a momentum to the upside it's much lower our sponsor blue Guardian is the only perform that gives you a tool to protect yourself from hitting your max daily losss and prevent you from over trading and it is very simple to use they also have a new unlimited time evaluation with low profit targets and no trading days requirement so you can get funded in the same day blue Guardian is a pram that I trust use the link in the description below and use the code mam to get 10% off your next Blue Guardian evaluation that doesn't mean it doesn't happen so if we switch back to the 4our we can see that okay this did not get filled right however we have another one which is for example this one we had a big sell off here then a big rejection leaving a fair valy Gap here it was filled however what is the difference between this fill of a fair Valley Gap and this one there is a difference you see this one took less time for price to come to the fair Valley Gap this one on the other hand took much time for price to come to the fair value Gap and you're going to notice this when we have that big rejection of the third candle is going to take more time for price to come to that fair value Gap okay that's a rule of thumb and also this example right here so what happened here after this price reecting this fair value Gap and you see the speed of price come into this Fair Valley Gap immediately at the next candle and then another time after three candles however this one where we have the big wick where if we go to the lower time frame we're going to see only one thing so if I put this on another color right on Green and then go to 50 minutes what we're going to notice here is that on the red one where the rejection happened it was really nothing but a lower time frame fair value Gap that gets filled already so you see this is not going to get filled immediately at least right or the probability of this getting filled is lower we have another Fair Val up on the lower time frame and that's where the rejection already happened starting going lower now taking a look at this again on the 4 Hour you're going to see that it took so this is the fair value Gap almost until price filled the fair value Gap here 11 candles 11 candles of the 4 Hour that's about 3 days or almost 4 days of price action not coming however on the other hand when this falia was created price only came it after one candle and then again after four candles so you see the difference here so that's a rule of thumb when we have a big rejection already it's going to tell us that there was already a rejection on the lower time frame there was a mitigation of another Fair valy gap on the lower time frame and it's going to also tell us that it's going to take longer for this Fair Valley Gap to be filled so expect to wait more or it's not going to be filled now talking about this Fair Val specifically you see how it was filled taking a look at the left we're going to see a lot of those examples so you see we have one Fair Valley Gap here on the 4 Hour that was filled almost immediately immediately after it was created filled here getting respected and this happened a lot of times a lot of times we have also a fair value Gap here where it gets respected immediately after so price comes here immediately goes up how do I know which one is going to get filled how do I know which one is not going to get filled immediately now we know that there is a specific type based on the three candles that really doesn't get filled immediately now take some notes the smaller the third candle is the higher probability for the fa Valley Gap to be filled and the faster it is on the other hand the bigger the candle on the opposite side is the lower probability for the fair value Gap to hold that's one thing that you need to understand what does that mean now looking at this considering this as a fair value Gap right so this is a fair value Gap all the focus again on the third candle right so whatever I said before this is the explanation when we have a smaller third candle then the faster we respect this fair value Gap to be filled so we have this fair value Gap here then we expect this Fair Valley Gap to be filled faster and why because now this is a small candle especially if it has also a smaller Weck then we might just see a manipulation below in order to go to the main drone liquidity right that's what we think is going to happen now let's imagine that this is on the other hand has again price going up and there was already a rejection that already happened here and this is my fair value Gap now what do I think is going to happen now I'm not expecting an immediate rebalance of the fair Valley Gap taking a look at this again so we discussed the high probability one which is we have a small candle third candle right small one without rejection not a big rejection and then we have a main draw in liquidity here so we know that okay price needs to go there now what is a perfect scenario for price to do it's to come lower to this per Val Gap and start going again to the main drone liquidity that's what I think is a high probability one on the other hand a low probability one so let's imagine this is a bullish candle bullish candle and then this one would happen or let's say this is a bullish candle here and then the next candle open here and then started going bearish and then it has a huge momentum to the Lower Side leaving this F Val Gap that's a big mistake you're making if you're still entering from this F Val Gap it could work yes everything could work because the probability still plays off however this is a very low probability why because we see already the momentum of this candle is already huge to the Lower Side so we're not trusting this Fair Valley Gap no more it could be just price going lower and disrespecting this Fair Valley Gap just like this right another bearish candle going to the Lower Side so when we have the third candle even though as a pattern it's still a fair value Gap and you could be still trading it but after this video you would know that a candle that looks like this with a huge candle to the upside and then another candle to the Lower Side almost engulfing it it did not engulf because if it engulf then we have no fair value Gap however almost engulfing this and leaving just a small fair value Gap this doesn't mean that this fair value Gap is going to hold actually it's the lower probability for this Fair rally Gap to hold right so this is a very low probability for Value gap on the other hand if we have something like this and a smaller uh buddy and a smaller wiek then expecting this to be an immediate fill to go up right we're going to have a market makers motel and as big as this one is going to be we're going to have a bigger market makers Motel now let's go again to the Forex chart because what I was discussing is NASDAQ forx chart this is New Zealand dollar and US daughter and I thought that it's going to be a very nice case study to go over the F value gaps that were created okay so starting with this one you see what do we notice here we not a huge one but a big one significant one compared to the others uh that happened at a fair value Gap what do we notice here that price did not fill this fair value gap which is the one above immediately and also it was disrespected later it took a lot of time for this Fair Valley gab to be actually hit 9 hours on the other hand this is only 15minute time frame on the other hand if we take a look at any other fair value Gap and what we focus on for example if we go take a look at this this was a fair valy Gap created after a liquidity sweep but what do we notice here an immediate retest of this Fair valy Gap or an immediate rebalance of this Fair valy Gap what's the reason do you notice how big the Weck of this candle is very small week and price already you know going bearish into the fair Valley Gap not a huge momentum leaving a small fair value Gap like this where that case Doesn't Really Happen always so that's going to only happen using a lower time frame however on the higher time time frame you're not going to notice that happen a lot because either it's leaving a wick into that fair Valley Gap or it's not creating a fair value Gap at all but just make sure that if you see something like that case then ignore entering now what do we see here an immediate reaction of the fair valy Gap going to the upside now if we go and take a look at any fair value Gap that has a third candle that has a small Wick you're going to only notice one thing that price actually filled that fair value Gap immediately especially if the thir candle did not go bullish so so if the third candle if it's going like this one and then going up two right and then the third candle determines if we have a fair value G or no however third candle goes like this so let's say price goes there and then third candle closes bearish in this case now the probability of this fair value Gap to be filled is higher and faster unlike if we have just a bullish candle to the upside because the retracement and you know this candle itself tells you that okay we want to go up faster right but if we retrace to the down side it means okay we are planning to retrace get a fair value here to go up so really this third candle tells you a whole story even if we're going to continue W or we're going to retrace and how long it's going to take now taking a look at this example another fair value Gap the third candle on this case in a bullish Fair Valia pattern the third candle is being bearish with a small Wick right here very small Weck right what do I expect now an immediate rebalance of this Fair Val Gap and that's what happened here immediately press come into that fair Val Gap there you go and then going up now take a look at any fair value Gap you see there's this one with a small Budd immediately on the next candle it's tested now however when I say this a bullish Fair valy Gap however the third candle was bullish unlike this one where it was bearish what does that tell us it's an indication that it's either the fair value give us is not going to be filled immediately or it's going to take longer or we might just push up without coming back to that fair valy Gap especially if we create another fair value Gap above it on this case price came to that fair value Gap but you know not even to the 75% of it only like slightly coming here because we had a very clear drawn liquidity on the high time frame the price only came here started going up and also this one it did not fill that fair value Gap immediately it took more time for price to come to that fair value Gap however here as price was closing bearish on this bullish fair value Gap immediate rebalance of that fair value Gap and this happened over and over you know over and over the same scenario goes on and on and now here now discussing this bearish Fair valy gap on the other hand what do we notice the third candle what's the color of it it's bearish and it's you know it was a displacement candle also closing below that's a breakaway Gap we expect this Fair valy Gap not this one actually this one but this one had a huge candle to the lowest side creating also another fair value Gap now this fair value Gap we know that it's really hard for this fair value Gap to be filled or it's going to take longer for this fair value Gap to be filled on the other hand price created another fair value Gap now why even though we had a bullish candle here but why this fair value Gap it's not going to be filled immediately only for one reason and what's the reason we had this big retracement already so price already retraced on the lower time frame and started going lower so there was a bearish momentum going on when we created this SP value so again we're not expecting this Fair valy Gap to be filled now this fair value Gap we could fill it right because it did not have that big rejection there is a rejection but it was not too big if we go deep into this on the lower time frame for example 1 minute we're going to notice that price actually came to a fair Valley Gap so you see this was the rejection here and it was price coming to this 1 minute Fair valy Gap and sweeping this liquidity so you see it's more clear when you go to that lower time frame just to see what happened here so price was retracing into a lower time frame Fair valy Gap instead of going to that 15 minute Fair valy gap on the higher time frame so that's the difference now you can actually just using the third candle of the fair valy Gap you can expect when a fair value gab is going to be filled expect when when a fair value gab is going to be respected and so many questions that we answer today hopefully you guys like this video if you do then make sure to hit the like button recommend some ideas for the videos and then share this video with your friends make sure to join the Discord this is mem and I'll see you in next video