Technical analysis by SynapseTrade about Symbol PAXG on 5/11/2025

SynapseTrade

Educational purposes only, not current analysis. A Fair Value Gap (FVG) represents an inefficiency in the market where price has moved rapidly in one direction, leaving a "gap" on the chart where minimal trading occurred across a specific price range. This is typically identified by a three-candle pattern where the wick of the first candle and the wick of the third candle do not overlap the entire body of the second, strong directional candle. Traders often anticipate price to eventually return to "fill" this gap. An Inverse Fair Value Gap (IFVG), also known as an Inversion Fair Value Gap, occurs when a standard FVG is invalidated. This happens when price trades completely through an existing FVG, suggesting that the initial imbalance has not been filled as expected. The key characteristic of an IFVG is that the area of the original FVG, after being broken through, can then act as a support or resistance level when price retests it from the other side.