I'm trying to clarify the strategy with Fair Value Gaps. I know the idea is that price will reverse course at some point and come back into this zone. Is the strategy always to wait for it to close on the other side of the zone and then open a trade that assumes price will continue in that direction? Or is there also a strategy for when price dips into the zone (but doesn't go through it) and then reverses course again?
In this example, price has returned to the zone. If a candle closes below the zone, I'll open a short position. Is it that simple? Or do I also prepare for a long trade if it comes back out and closes above the zone?