FVG & Market Structure Strategy

Overview

About

The FVG & Market Structure Strategy is a momentum trading approach that leverages the Lune Technical Analysis Premium and Lune Oscillator Premium indicators to identify and capitalize on Fair Value Gaps and market structure signals. This strategy is suitable for various trading styles, including scalp, day, swing, and position trading, and helps traders pinpoint optimal entry and exit points by analyzing market momentum and structure.

Trading Style

• Scalp Trading

• Day Trading

• Swing Trading

• Position Trading

Indicator(s) Required

• Lune Technical Analysis Premium

• Lune Oscillator Premium

Indicator Settings

• Lune Technical Analysis Premium

  • Market Structure:

    • Short-term: All

    • Long-term: All

    • Show Text: Large

  • Fair Value Gaps

    • Fair Value Gaps 1: Enabled | Chart

    • Mitigation Mode: Close

    • Extend Box: Enabled | 5

    • Quality Filter: Enabled | 3

    • Key Level: Half

• Lune Oscillator Prmeium

  • Sensitivity: Mid

  • Velocity: Fast

  • Market Peak: Enabled | Sensitivity: 5

  • Money Pulse: Enabled | Sensitivity: 1

  • Reversal Radar: Enabled

How It Works

Entering Trade

• Bullish Trades: The Money Pulse must be bullish. The Market Structure must be bullish (indicated by a plus sign). Enter the trade when a Bullish Fair Value Gap (FVG) is confirmed.

• Bearish Trades: The Money Pulse must be bearish. The Market Structure must be bearish (indicated by a plus sign). Enter the trade when a Bearish Fair Value Gap (FVG) is confirmed.

Stop Loss

• Bullish Trades: Set the stop loss at the recent market low or when the Money Pulse becomes bearish.

• Bearish Trades: Set the stop loss at the Recent market high or when the Money Pulse becomes bullish.

Exiting Trade

• Bullish Trades: Exit the trade when the Money Pulse becomes bearish, or if a bearish Market Peak is detected, or if a bearish Reversal Radar is detected.

• Bearish Trades: Exit the trade when the Money Pulse becomes bullish, or if a bullish Market Peak is detected, or if a bullish Reversal Radar is detected.

Step-by-Step Walkthrough

Bullish Scenario - Example #1

Step 1

Ensure the Money Pulse is bullish and the Market Structure is bullish (with a plus sign). These are key bullish indicators.

Step 2

• Wait for a bullish Fair Value Gap (FVG) to be detected.

• Enter a long trade when the Fair Value Gap is confirmed.

• Set the stop loss at the recent market low or exit if the Money Pulse becomes bearish.

Step 3

• Exit the trade when indicators show bearish sentiment. This includes the Money Pulse turning bearish, a bearish Market Peak being detected, or a bearish Reversal Radar appearing.

• In this example, profit was taken because the Money Pulse became bearish.

Bearish Scenario - Example #2

Step 1

Ensure the Money Pulse is bearish and the Market Structure is bearish (with a plus sign). These are key bearish indicators.

Step 2

• Wait for a bearish Fair Value Gap (FVG) to be detected.

• Enter a short trade when the Fair Value Gap is confirmed.

• Set the stop loss at the recent market high or exit if the Money Pulse becomes bullish.

Step 3

• Exit the trade when indicators show bullish sentiment. This includes the Money Pulse turning bullish, a bullish Market Peak being detected, or a bullish Reversal Radar appearing.

• In this example, profit was taken because the Money Pulse became bullish.

Conclusion

The FVG & Market Structure Strategy excels in guiding trading decisions through the precise use of Fair Value Gaps and market structure analysis, emphasizing clear entry and exit points. By focusing on market momentum and confirmation signals, traders can make informed and effective trades. This strategy demonstrates the power of combining detailed market analysis with advanced trading tools to improve trading outcomes across different market conditions.