What are pending orders ?
Friends why market moves sharply or moves in a narrow area. the main reason of market movement is to capture the buyers or sellers liquidity.Market movers always enters in low prices and quit in higer prices but they don't want to allow the retailers to move with them so they always moves in a way to liquidate the retailers. Market movers buy in bulk amount and while the market moves from low prices to high prices or from high price to low prices during this process some orders of these big institutions are left to be processed by market because of market sharp flows in these areas where the big orders were placed, these left orders are called the pending orders these pending orders are reflected in the chart as the boring candles or the unfilled candles.
What is Fair Value Gap or FVG ?
While market going to fulfull the pending orders it takes the liquidity of buyers or sellers in the form the FVG or fair value gap. Lets understand the FVG. While market goes from high price to low price or going in downwords then it checks the each red candles and if there are sellers liquidity present in candles then takes it and then goes ups.
Similarly when market is going up then it checks each green candle and if liquidity is present in that candle then takes the green candle liquidity and goes ups if there are more FVG in other green candles or goes down if all green candles liquidity has taken.