Fair value in other words is a horizontal or ascending trading range within the boundaries.
Above the fair value is the excess price (marked in red).
The stronger the rejection from the excess price (either top or bottom) the bigger supply or demand is at that rejection area - probability of the reversal is proportional to the strength of rejection.
If the price starts ignoring the old fair value, you should start discovering new one.
Above the fair value is the excess price (marked in red).
The stronger the rejection from the excess price (either top or bottom) the bigger supply or demand is at that rejection area - probability of the reversal is proportional to the strength of rejection.
If the price starts ignoring the old fair value, you should start discovering new one.