What is a FVG?

Fair value gaps are price gaps that occur when there is a significant difference between the closing price of one trading and the opening price of the next, with minimal or no trading in between.

What is the meaning of FVG?

A Fair Value Gap (FVG) is a price range on a chart where an imbalance exists between buyers and sellers.

How to identify a FVG?

Check for three consecutive candles: The middle candle is where the action happens. Compare the highs and lows: For bullish FVGs, check if the low of the first candle is higher than the high of the third candle. Mark the gap area: The space between these levels represents your FVG.

What is an FVG in crypto?

A Fair Value Gap (FVG) is a price imbalance that occurs when the market moves so quickly in one direction that it leaves an untraded zone on the chart.

What is the best timeframe to look for FVG?

For traders who focus on short-term moves, such as day traders and scalpers, using smaller timeframes like 1-minute, 5-minute, or 15-minute charts can help spot fair value gaps that may fill quickly. These gaps are often caused by sudden news or market volatility.

The Only Fair Value Gap Video You'll Ever Need.

Who invented FVG trading?

ICT (Inner Circle Trader, known as Michael J. Huddleston) — A trading instructor who developed the contemporary Smart Money Concepts framework, which includes FVGs, Order Blocks, and Liquidity Sweeps.

How to master FVG?

Using Fair Value Gaps in Trading Strategy

Identify Market Trends: Ensure you are aware of the market trend. Fair value gaps are more effective when used in conjunction with a strong trend. Look for Breaks in Structure: In an uptrend, look for bullish fair value gaps that occur during moves that break market structure.

What is SMC trading?

Smart Money Concept (SMC) empowers traders to decode market dynamics by tracking institutional footprints through order blocks, fair value gaps, and liquidity grabs. It shifts the focus from traditional price action to underlying supply-demand imbalances, offering deeper insights and high-probability opportunities.

Is FVG an indicator?

The Fair Value Gap (FVG) Indicator can help identify gaps in price movement across three-bar sequences. A visual highlight is drawn on the chart when a gap is detected between the first and third bars. This highlight can persist until the gap is filled, partially filled, or a user-defined number of bars has elapsed.

How to use Fibonacci retracement?

You can create Fibonacci retracement lines by choosing a major peak and trough on a stock chart. The tool creates horizontal lines at key Fibonacci ratios--23.6%, 38.2%, 50%, and 61.8% of the distance between the peak and the trough. You can then use these lines to identify possible support and resistance levels.

What happens after a FVG?

In a bullish FVG (when the price is going up), the gap is between the high of the first candle and the low of the third. The price often comes back down to fill the gap before going up again. In a bearish FVG (when the price is going down), the gap is between the low of the first candle and the high of the third.

How to spot significant FVG?

Why does the price go to FVG?

A Fair Value Gap (FVG) is a price void or imbalance left when the market surges aggressively in one direction—usually triggered by institutional orders that overwhelm the available liquidity. This results in a short-term “vacuum” where price didn't efficiently fill both sides (buy and sell).

What is another name for FVG?

Fair Value Gaps are price jumps caused by imbalanced buying and selling pressures. These gaps are sometimes called Price Value Gaps, or Singles, and you may also encounter the term imbalance. In this article, we will use the term Fair Value Gap (also referred to as FVG).

Is ICT or SMC good for stock trading?

Many traders consider SMC to be a more accessible version of institutional trading concepts, while ICT provides deeper but more complex insights.

Which trading business is most profitable?

What is the Wyckoff theory?

Wyckoff, the Wyckoff Theory assumes that all charts represent supply and demand and argues that price and volume are sufficient to predict both trend continuations and reversals. If you have some trading experience and understand the basics of chart reading, you may find Wyckoff's market-cycle approach valuable.

How do I figure out FVG?

Identifying Fair Value Gaps

To manually identify FVGs: Look for a series of three candles with a strong move in one direction. Check if the third candle's open does not overlap with the first candle's close. Confirm that the space between these levels has not been filled by subsequent price action.

How profitable is FVG?

In summary, fair value gaps can offer profitable opportunities for experienced traders who have the skills and knowledge to identify inefficiencies in financial markets. It is important for traders to carefully consider the pros and cons before implementing this strategy.

Who invented the FVG?

The Fair Value Gap (FVG) was developed by Michael Huddleston, a trader and analyst from the USA, also known as The Inner Circle Trader (ICT). He has a popular YouTube channel where he promotes his Smart Money Concept, which includes the Fair Value Gap setup.

What is an OB in trading?

Order Blocks (OB) are a trading concept used by price action traders (also known as SMC or ICT traders). They locate areas where there is a large amount of buyers or sellers on a chart, where traders can enter positions to profit.

What is ICT trading?

ICT trading, short for Inner Circle Trader, is a strategy developed by Michael J. Huddleston that focuses on understanding the market from the perspective of institutional traders. This article explains the details of this trading strategy, exploring its core concepts, trading methods, benefits, and drawbacks.

What invalidates FVG?

An Inversion Fair Value Gap (IFVG) is formed when the FVG is invalidated by either a candle wick or close.