Is the 15m FVG still valid after a new high?

Understanding Fair Value Gaps (FVG)

Fair Value Gaps (FVG) are areas on a price chart where there is a significant imbalance between buyers and sellers, often leading to price retracements back to these levels.

In trading strategies, particularly those based on market structure, FVGs can serve as potential support or resistance levels.

Impact of New Highs on FVG Validity

When a new high is made after an FVG has formed, it can complicate the interpretation of that gap.

Typically, if the market has moved significantly beyond the FVG, it may indicate that the gap is less likely to hold as a reversal point, as the market sentiment may have shifted.

However, some traders may still consider the FVG valid if they believe that the market may return to that level for a retracement, depending on other supporting factors like volume or market context.

What Isn't Confirmed

The specific behavior of FVGs after new highs can vary based on market conditions and asset volatility, and there is no definitive rule that applies universally.

Traders often rely on their own experiences and backtesting results to determine the effectiveness of FVGs in their strategies.

Where to Verify

For more detailed insights on FVGs and their behavior in different market conditions, consider reviewing trading literature or resources that focus on market structure and price action.

Additionally, backtesting your own strategies using platforms like IndicatorEdge can provide empirical evidence on how FVGs perform in various scenarios.