Fair Value Gaps (FVGs)

What is a Fair Value Gap?

A Fair Value Gap (FVG) is an area where price moved so quickly that it left an imbalance behind

Think of it as a price gap the market often revisits before continuing its trend

How to Spot an FVG?

An FVG forms using 3 candles.

Bullish FVG

• Candle 1

• Strong bullish Candle 2

• Candle 3 leaves a gap between Candle 1 and Candle 3

  

Bearish FVG

• Candle 1

• Strong bearish Candle 2

• Candle 3 leaves a gap between Candle 1 and Candle 3

The gap between Candle 1 and Candle 3 is the Fair Value Gap

How to Trade It?

For a Bullish FVG

1. Find the FVG

2. Wait for price to return

3. Look for bullish confirmation

4. Enter the trade

5. Place your stop below the FVG or recent swing low

For a Bearish FVG

1. Find the FVG.

2. Wait for price to return

3. Look for bearish confirmation

4. Enter the trade

5. Place your stop above the FVG or recent swing high

Tips

✔ Trade FVGs with the trend

✔ Combine them with

• Market Structure

• Order Blocks

• Liquidity

• Supply & Demand

Not every FVG is worth trading. Wait for confirmation

💬 In Simple Terms

An FVG is an area where the price moved too fast. Markets often revisit these zones, making them valuable areas to watch for potential trade entries

GapSniper automatically detects and marks these gaps, so you can spend less time drawing and more time analyzing