The Complete Guide to Fair Value Gaps (FVGs) in Forex Trading (2026)
How to Identify Market Imbalances and Understand Their Role in Price Action
Fair Value Gaps (FVGs) are a popular concept in modern price-action trading, particularly within methodologies associated with Smart Money Concepts (SMC) and ICT-style technical analysis.
Traders who use FVGs study areas where price moved rapidly in one direction and left a particular three-candle price structure behind.
The concept can be useful for studying:
Market momentum
Price expansion
Potential areas of interest
Retracements
Market structure
Multi-timeframe price action
However, an important distinction should be made from the beginning:
A Fair Value Gap is an area of technical interest, not a guaranteed trading signal.
Price may return to an FVG, partially revisit it, move through it, or never return to it at all.
Therefore, identifying an FVG should not automatically lead to a buy or sell decision.
Instead, traders can use the concept alongside broader market context, including market structure, support and resistance, liquidity, and risk management.
This guide explains Fair Value Gaps in a simple and practical way, including how they form, how traders identify them, how they can be analyzed with other technical concepts, common mistakes, and how beginners can practice the concept responsibly.
What Is a Fair Value Gap?
A Fair Value Gap (FVG) is a price-action concept used to describe a three-candle structure in which the price range between the first and third candle is not fully overlapped.
The concept is commonly associated with ICT and Smart Money Concepts trading methodologies.
In simple terms, an FVG can appear when price moves strongly in one direction and creates a temporary area between candles where the price ranges do not overlap in the way described by the methodology.
A simple analogy is a vehicle moving rapidly along a road and leaving a section between two points that was crossed very quickly.
The analogy is only for understanding the concept. It does not mean that financial markets literally leave an empty space where no trading occurred.
That distinction matters.
An FVG should be treated as a chart-based observation, not as direct evidence of hidden institutional orders or a guaranteed future price reaction.
Why Do Traders Study Fair Value Gaps?
Traders study FVGs because they can provide additional information about how strongly price moved during a particular period.
For example, suppose EUR/USD is moving sideways.
Suddenly, price makes a strong upward expansion.
The candles surrounding that movement may form a structure that meets the trader's definition of a Bullish FVG.
The trader can then mark the area and monitor what happens if price later returns.
The FVG may help answer questions such as:
Where did a strong price expansion occur?
Did the movement create an identifiable imbalance?
Is the area located within a broader trend?
Does it overlap with another technical area?
How does price behave when it revisits the area?
The purpose is therefore analysis, not certainty.
Are Fair Value Gaps a Standardized Indicator?
No.
This is an important point for beginners.
A Fair Value Gap is not a universally standardized indicator like a moving average or RSI.
The concept is primarily associated with particular price-action methodologies, including ICT-style and Smart Money Concepts approaches.
Different traders may use slightly different definitions, especially regarding:
Which candle must be considered the first candle
How the gap is measured
Whether wicks or candle bodies are emphasized
When an FVG is considered filled
How an FVG is classified after price moves through it
Because the methodology is not universally standardized, educational material should explain the specific definition being used.
In this guide, we use the common three-candle definition explained below.
How Does a Fair Value Gap Form?
The classic FVG is identified using three consecutive candles.
The middle candle is generally the strong expansion candle.
The relationship between the first and third candles determines whether a gap exists according to the methodology.
There are two commonly discussed types:
Bullish Fair Value Gap
Bearish Fair Value Gap
Bullish Fair Value Gap
A Bullish Fair Value Gap forms within a strong upward price movement.
A simplified structure looks like this:
Candle 1 → Strong Bullish Candle → Candle 3
For a commonly used bullish FVG definition:
The high of Candle 1 is below the low of Candle 3.
The price range between those two points is marked as the FVG.
Conceptually:
Candle 1 Candle 2 Candle 3
│ │ │
│ │ │
│ █████ │
███ █████ ███
███ █████ ███
│ │
← Bullish FVG →
The exact visual appearance can vary depending on the chart and timeframe.
The important point is the relationship between the first and third candles.
Bearish Fair Value Gap
A Bearish Fair Value Gap forms during a strong downward price movement.
A simplified structure is:
Candle 1 → Strong Bearish Candle → Candle 3
For a commonly used bearish FVG definition:
The low of Candle 1 is above the high of Candle 3.
The area between those points becomes the bearish FVG.
Conceptually:
Candle 1 Candle 2 Candle 3
│ │
███ █████ ███
███ █████ ███
│ █████ │
│ │
← Bearish FVG →
Again, the important feature is the relationship between the first and third candles.
A Simple Way to Remember Bullish and Bearish FVGs
You can remember the basic structure this way:
Bullish FVG
Candle 1 High < Candle 3 Low
Bearish FVG
Candle 1 Low > Candle 3 High
This gives you a simple mathematical reference when checking a chart.
However, identifying the pattern is only the first step.
The surrounding market context still matters.
Does Every Fast Price Movement Create a Useful FVG?
No.
A trader may identify a three-candle structure that technically resembles an FVG, but that does not automatically make the area important.
Consider two examples.
Example A: Strong Expansion
Price has been consolidating.
Then a large directional movement occurs.
The three-candle structure creates an FVG.
This may provide useful context because the FVG is associated with a noticeable expansion.
Example B: Small, Choppy Movement
Price is moving sideways with small candles.
Several small FVG-like structures appear.
These areas may provide much less useful information because they occur within ordinary market noise.
This is why FVG analysis should consider the quality and context of the price movement, rather than simply counting every FVG on the chart.
Does Price Always Return to Fill an FVG?
No.
This is one of the most important lessons for beginners.
An FVG does not have to be filled.
After an FVG forms, price may:
Return and completely fill it.
Return and partially fill it.
Touch the edge and move away.
Move through the entire area.
Never return to the area.
There is no rule requiring the market to revisit every FVG.
Therefore, saying:
“Price must come back to fill the gap”
would be an inaccurate way to describe the concept.
A better interpretation is:
“An FVG may become an area worth monitoring if price later returns to it.”
That wording preserves the educational value without creating a false expectation.
What Does “Filling” an FVG Mean?
The term FVG fill is commonly used when price returns into the area previously identified as the Fair Value Gap.
For example, suppose a Bullish FVG exists between two price levels.
Price later declines into that area.
A trader may describe this as the FVG being revisited or filled.
There is no universal requirement that an FVG must be completely filled.
Different traders may use terms such as:
Partial fill
Full fill
Mitigation
Revisit
The exact terminology depends on the methodology being followed.
For beginners, the simplest approach is to focus on what price actually does.
What Makes an FVG More Relevant for Analysis?
Not every FVG deserves the same amount of attention.
Instead of calling one FVG “high probability,” it is more responsible to describe certain FVGs as having more contextual relevance.
Several factors can contribute to that relevance.
1. Strength of the Price Movement
An FVG created during a noticeable directional expansion may provide more useful information than a small FVG formed during slow, sideways movement.
Ask:
Was the movement clearly directional?
Were the candles relatively large compared with nearby candles?
Did price move away from the area quickly?
2. Market Structure
Consider the broader market structure.
For example, a Bullish FVG appearing during a sequence of:
Higher Highs
Higher Lows
may provide different context from a Bullish FVG appearing during a prolonged bearish structure.
This does not mean the bullish FVG will succeed.
It simply means the surrounding market structure should be considered.
3. Timeframe
FVGs can appear on many timeframes.
You may find them on:
Weekly
Daily
H4
H1
M15
M5
Higher-timeframe FVGs may provide broader chart context, while lower-timeframe FVGs appear more frequently and can contain more short-term market noise.
There is no universal “best” timeframe.
The appropriate timeframe depends on your trading style and the period you intend to study or hold a position.
4. Location
An FVG may deserve closer attention when it occurs near another technically significant area.
For example:
Support
Resistance
Supply
Demand
Swing high
Swing low
Order Block
Liquidity area
Premium or Discount area
The FVG itself does not become guaranteed because of these factors.
They simply provide additional context.
FVGs in Trending Markets
Suppose EUR/USD is forming:
Higher High → Higher Low → Higher High
This suggests a bullish market structure.
During one upward expansion, a Bullish FVG forms.
If price later pulls back toward the FVG, a trader may monitor the area.
But the trader should still ask:
Is the bullish structure intact?
Has price broken an important low?
Is there nearby support?
Is the market approaching major economic news?
What is price actually doing inside the FVG?
The FVG should remain part of the analysis rather than becoming the entire analysis.
FVGs in Ranging Markets
FVGs can also appear during sideways markets.
However, a range can produce many small price movements and technical patterns.
Therefore, simply finding an FVG inside a range does not automatically make it significant.
A trader should first identify the broader market condition.
If price is consolidating between clear support and resistance, the FVG should be interpreted within that range.
This prevents the common mistake of assuming that every technical pattern represents a new directional trend.
Fair Value Gaps and Market Structure
Market structure can provide important context for FVG analysis.
A basic bullish structure can contain:
Higher Highs
Higher Lows
A basic bearish structure can contain:
Lower Highs
Lower Lows
Suppose a Bullish FVG forms during a strong upward movement and that movement also breaks a previous swing high.
The trader can record two separate observations:
An FVG formed.
Price broke a meaningful structural level.
That provides more context than simply marking the FVG.
However, it still does not guarantee what happens next.
For further reading:
Fair Value Gaps and Break of Structure (BOS)
A Break of Structure (BOS) is commonly used by price-action traders to describe price breaking an important previous swing point.
For example:
Price forms a Higher High.
Pulls back.
Forms a Higher Low.
Moves above the previous high.
A trader may describe the final movement as a bullish BOS.
If an FVG forms during that expansion, the FVG can be studied alongside the structural break.
The important distinction is:
The BOS provides structural information; the FVG identifies a particular price relationship created during the movement.
They are related observations, but they are not the same thing.
Fair Value Gaps and Change of Character (ChoCH)
Change of Character (ChoCH) is another term used by some price-action methodologies to describe a possible shift in market structure.
For example, a market that has been producing lower highs and lower lows may eventually break an important lower-timeframe high.
Some traders interpret that as a possible change in directional behavior.
If an FVG forms during or around such a movement, traders may monitor both concepts.
However, ChoCH terminology is not standardized across all trading methodologies.
Therefore, it should be treated as an analytical framework rather than a guaranteed reversal signal.
Fair Value Gaps and Liquidity
Liquidity analysis is frequently combined with FVG analysis.
Traders often monitor:
Previous highs
Previous lows
Equal highs
Equal lows
Range boundaries
Suppose price moves below a previous low and then makes a strong bullish expansion.
During the expansion, a Bullish FVG forms.
A trader might record:
Sell-side liquidity was reached.
Strong bullish movement followed.
Bullish FVG formed.
Market structure changed.
These are useful observations.
But the trader should avoid automatically concluding that an institution deliberately “hunted” stops.
The chart shows the price movement; it does not necessarily reveal the intentions of individual market participants.
For further study:
The Complete Guide to Liquidity in Forex Trading
Fair Value Gaps and Order Blocks
Order Blocks are another concept often combined with FVGs.
For example:
Price consolidates.
A strong bullish movement begins.
A potential Bullish Order Block is identified near the origin of the move.
A Bullish FVG forms during the expansion.
Price later retraces.
The trader can observe whether the Order Block and FVG overlap or sit near one another.
This may create an area of interest.
But the combination does not guarantee that price will reverse.
You can learn more about Order Blocks here:
The Complete Guide to Order Blocks in Forex Trading
Fair Value Gaps and Premium/Discount Zones
Some traders also combine FVG analysis with Premium and Discount concepts.
Within a defined market swing:
The upper portion may be described as Premium.
The lower portion may be described as Discount.
The midpoint is often referred to as Equilibrium.
Suppose a Bullish FVG forms within the Discount portion of a clearly defined bullish swing.
A trader may consider the location worth studying.
Likewise, a Bearish FVG within a Premium area may receive attention during a bearish market structure.
However, Premium and Discount are relative-value concepts, not automatic buy or sell signals.
For more information:
The Complete Guide to Premium and Discount Zones in Forex Trading
Fair Value Gaps and Support and Resistance
Support and resistance can provide additional context for FVGs.
Imagine EUR/USD has an established support area.
A Bullish FVG forms close to that support during a strong upward movement.
If price later returns to the area, the trader can observe whether support remains relevant.
Similarly, a Bearish FVG near resistance can be monitored for price behavior.
The important point is that the support or resistance level should not be treated as guaranteed.
Markets can break established levels.
For further reading:
The Complete Guide to Support and Resistance in Forex Trading
Multi-Timeframe FVG Analysis
One useful way to study FVGs is through multiple timeframes.
For example:
Daily
Use the Daily chart to identify:
Broader market structure
Major price movements
Significant FVGs
Major support/resistance
H4
Use H4 to examine:
Intermediate structure
Additional FVGs
Important swing points
H1 or M15
Use the lower timeframe to observe:
Short-term price behavior
Reactions
Structural changes
Smaller FVGs
You do not need to use every timeframe.
A simpler approach may be:
Daily → H4 → H1
or:
H4 → H1 → M15
The appropriate combination depends on your trading approach.
For more information:
The Complete Guide to Multi-Timeframe Analysis in Forex Trading
What Can Happen When Price Returns to an FVG?
When price revisits an FVG, several outcomes are possible.
Scenario 1: Price Reacts
Price enters the FVG and then moves away.
This may indicate that the area remains relevant to current market behavior.
Scenario 2: Price Partially Fills the FVG
Price enters only part of the area and then moves away.
The trader may describe this as a partial fill.
Scenario 3: Price Fully Fills the FVG
Price moves through the entire identified area.
This is often called a full fill.
However, a full fill does not automatically mean that price must reverse.
Scenario 4: Price Moves Through the FVG
Price may pass through the area with little reaction.
This demonstrates why an FVG should not be treated as guaranteed support or resistance.
Scenario 5: Price Never Returns
An FVG may remain untouched for a long period.
There is no rule requiring price to revisit it.
Confirmation at an FVG
Some traders prefer to wait for additional evidence before considering an FVG relevant to a potential trade.
Possible observations include:
A rejection candle
Bullish or bearish engulfing pattern
Short-term market-structure change
Break of a minor swing
Interaction with support/resistance
Liquidity sweep
Reaction around an Order Block
These observations can provide additional context.
But confirmation does not eliminate uncertainty.
A setup can still fail after apparently strong confirmation.
A Hypothetical Gold Example
Consider a hypothetical XAU/USD scenario.
The Daily chart shows:
Higher Highs
Higher Lows
An overall bullish structure
During a strong upward movement, a Bullish FVG forms.
The FVG is located near a previously identified support area.
Later, Gold retraces toward the FVG.
The trader does not automatically buy simply because price entered the gap.
Instead, the trader observes:
Is the Daily bullish structure still intact?
Does price hold the nearby support?
Is there a meaningful liquidity event?
Does the M15 chart show a structural change?
Is there a clear rejection?
What would invalidate the bullish interpretation?
If the trader eventually decides to act, the decision is based on the complete analysis, not the FVG alone.
This is a hypothetical educational example and does not represent a prediction for Gold.
Why Confluence Can Be Useful
Confluence means that multiple technical observations provide context around the same area.
For example:
Market structure
FVG
Support
Liquidity
Order Block
may all appear around a similar price region.
This can make the area more interesting to study.
However, an important correction should be made:
More confluence does not mathematically guarantee a better trade.
Five technical observations can still be wrong.
Confluence should therefore be used to create a more structured analysis, not to create false confidence.
FVGs Are Not a Complete Trading Strategy
An FVG by itself does not tell you:
How much money to risk
Where a trade becomes invalid
How large a position should be
When to exit
How frequently to trade
Whether current market conditions are suitable
How economic news could affect the market
Therefore, an FVG should be considered one component of technical analysis, not a complete trading strategy.
A responsible trading plan should also include:
Risk management
Position sizing
Entry criteria
Invalidation
Exit rules
Trading frequency
Journal and review process
Common Beginner Mistakes When Using FVGs
1. Assuming Every FVG Must Be Filled
This is probably the most common misunderstanding.
Some FVGs are revisited.
Others are not.
2. Marking Every Three-Candle Pattern
Not every three-candle structure deserves equal attention.
Look at the strength and context of the movement.
3. Treating an FVG as an Automatic Entry
Price reaching an FVG does not automatically mean “buy” or “sell.”
4. Ignoring the Higher-Timeframe Structure
A small bullish FVG on M5 may occur inside a strong Daily downtrend.
Context matters.
5. Assuming Every FVG Represents Institutional Orders
An FVG is a chart-based interpretation.
It does not provide direct evidence of which market participants created the movement.
6. Using Too Many Technical Concepts
Adding FVG + Order Block + liquidity + BOS + ChoCH + trendline + indicators does not automatically improve analysis.
Too many concepts can make a trading process unnecessarily complicated.
7. Ignoring Economic News
Major economic announcements can produce rapid price movements that invalidate technical assumptions.
8. Forgetting Risk Management
A technically attractive FVG can fail.
Never allow confidence in a chart pattern to replace responsible risk management.
9. Looking Only at Winning Examples
If you study only FVGs that worked, you can develop unrealistic expectations.
Study failed examples too.
10. Changing the Definition After the Fact
If an FVG fails, do not keep changing the boundaries or methodology simply to make the historical setup appear successful.
Use consistent rules when studying historical charts.
A Simple FVG Analysis Process for Beginners
If you are new to Fair Value Gaps, use a simple process.
Step 1: Identify the Market Condition
Ask:
Is the market bullish?
Bearish?
Ranging?
Step 2: Identify Strong Price Expansion
Look for noticeable directional movement.
Step 3: Check the Three-Candle Structure
Confirm whether the candles meet your chosen FVG definition.
Step 4: Mark the FVG
Clearly mark the relevant price range.
Step 5: Check the Higher Timeframe
Determine whether the FVG fits the broader market structure.
Step 6: Check the Location
Look for nearby:
Support
Resistance
Liquidity
Order Blocks
Premium/Discount areas
Step 7: Wait for Price
Price may revisit the FVG, but it may also never return.
Step 8: Observe the Reaction
Do not assume the outcome beforehand.
Step 9: Define Invalidation
Ask:
What would make my original interpretation less convincing?
Step 10: Record the Result
Use a trading journal to document what happened.
Practical FVG Chart Exercise
You can practice FVG analysis without risking real money.
Open a historical chart for:
XAU/USD
EUR/USD
GBP/USD
BTC/USD
Then:
Exercise 1
Identify a strong bullish movement.
Exercise 2
Check whether the three-candle structure forms a Bullish FVG.
Exercise 3
Identify a strong bearish movement.
Exercise 4
Check whether a Bearish FVG formed.
Exercise 5
Record whether price later:
Fully revisited the FVG
Partially revisited it
Moved through it
Never returned
Exercise 6
Compare the FVG with:
Market structure
Support/resistance
Liquidity
Order Blocks
Exercise 7
Record both successful and failed examples.
The goal is not to prove that FVGs always work.
The goal is to understand how they behave under different market conditions.
FVG Trading Journal Template
A simple journal can contain:
| Category | Observation |
|---|---|
| Asset | XAU/USD, EUR/USD, GBP/USD, BTC/USD |
| Date | Date of observation |
| Timeframe | D1, H4, H1, M15 |
| FVG Type | Bullish / Bearish |
| Price Range | FVG boundaries |
| Market Structure | Bullish / Bearish / Range |
| Strength of Move | Strong / Moderate / Weak |
| Liquidity | Nearby or absent |
| Support/Resistance | Present or absent |
| Order Block | Present or absent |
| Price Revisited | Yes / No |
| Reaction | Reversal / continuation / consolidation |
| Invalidation | What would invalidate the idea |
| Lesson | What the chart taught you |
This helps you evaluate the concept objectively rather than relying on memory.
Your Complete Fair Value Gap Checklist
Before considering an FVG important, ask:
Market Context
What is the higher-timeframe structure?
Is the market trending or ranging?
Are major economic events approaching?
FVG Structure
Does the three-candle structure meet my definition?
Is the FVG clearly identifiable?
Was the movement sufficiently directional?
Location
Is there nearby support?
Is there nearby resistance?
Is there liquidity nearby?
Is there an Order Block?
Is the FVG within a Premium or Discount area?
Price Behavior
Has price revisited the FVG?
Was the revisit partial or complete?
Did price reject the area?
Did price continue through it?
Did market structure change?
Risk
What would invalidate the analysis?
Is the position size appropriate?
Can I afford the potential loss?
Am I following a predefined trading plan?
Frequently Asked Questions About Fair Value Gaps
1. Does every Fair Value Gap get filled?
No.
An FVG may be completely filled, partially filled, ignored, or broken through.
2. Is an FVG a buy or sell signal?
No.
An FVG is an area of technical interest.
It should not automatically be interpreted as a buy or sell signal.
3. Can I trade using only Fair Value Gaps?
It is generally better to study FVGs within broader market context rather than treating them as a complete trading system.
Market structure, risk management, support/resistance, liquidity and other relevant information can provide additional context.
4. Which timeframe is best for identifying FVGs?
There is no universally best timeframe.
Higher timeframes can provide broader context, while lower timeframes can provide more detailed price information.
Choose timeframes that match your trading approach.
5. Is an FVG the same as a liquidity zone?
No.
An FVG describes a particular three-candle price relationship.
A liquidity area refers to a location where traders may expect orders to be concentrated.
They describe different concepts.
6. Is an FVG the same as a price gap?
Not necessarily.
A traditional market gap generally refers to price opening significantly above or below a previous price area.
An FVG is a specific three-candle price-action structure.
The terms should not automatically be treated as interchangeable.
7. Do FVGs only occur in Forex?
No.
Traders use FVG concepts on markets including:
Forex
Gold
Indices
Stocks
Cryptocurrency
The concept is based on price behavior rather than being exclusive to one asset class.
8. Does a larger FVG mean a stronger trading opportunity?
Not necessarily.
Size alone does not determine significance.
Market structure, location, price movement and broader context should also be considered.
9. Can an FVG fail?
Yes.
Price can move directly through an FVG without producing the reaction a trader expected.
This is why invalidation and risk management are important.
10. Can an FVG remain unfilled?
Yes.
There is no requirement for price to return to every FVG.
How to Learn Fair Value Gaps Responsibly
If you are new to FVGs, avoid immediately trying to trade every pattern you find.
Instead, use a gradual learning process.
Stage 1: Learn the Definition
Understand the three-candle structure.
Stage 2: Study Historical Charts
Find examples of:
Bullish FVGs
Bearish FVGs
Filled FVGs
Partially filled FVGs
Unfilled FVGs
Failed FVGs
Stage 3: Add Market Context
Study how the FVG behaves within:
Trends
Ranges
Support/resistance
Market-structure changes
Stage 4: Keep a Journal
Record your observations.
Stage 5: Practice on Demo
If you eventually want to incorporate FVG analysis into a trading plan, test the rules in a demo environment before risking real money.
This approach can help separate genuine understanding from assumptions created by seeing only successful examples online.
Fair Value Gaps and Trading Psychology
Technical concepts can create a false sense of certainty.
A trader may see:
FVG
Order Block
Liquidity sweep
BOS
ChoCH
Support
and conclude that the trade is almost certain to work.
It is not.
The more technical labels appear on a chart, the easier it can become to confuse complexity with certainty.
A disciplined trader should remain comfortable with being wrong.
The important questions are:
What is my analysis?
and:
What would prove my analysis wrong?
This mindset can be more valuable than trying to find a perfect technical setup.
The Most Important Lessons About Fair Value Gaps
By now, you should understand that:
A Fair Value Gap is a price-action concept based on a three-candle structure.
Bullish and bearish FVGs are identified using different relationships between the first and third candles.
FVGs are commonly associated with strong price expansion.
FVGs are popular within ICT and Smart Money Concepts methodologies.
The concept is not a universally standardized financial indicator.
An FVG is an Area of Interest, not a guaranteed trading signal.
Price does not have to return to an FVG.
An FVG can be partially filled, fully filled, ignored, or broken.
Market structure provides important context.
Liquidity, Order Blocks, support/resistance and Premium/Discount can provide additional context.
Confluence does not eliminate uncertainty.
Higher timeframes can provide broader context, while lower timeframes provide greater detail.
An FVG does not prove that institutions placed orders at a particular price.
A liquidity sweep does not automatically mean deliberate market manipulation.
Economic news can significantly affect price behavior.
Risk management remains necessary regardless of how convincing an FVG appears.
Historical chart behavior does not guarantee future results.
FVG analysis should be treated as one part of a broader educational and trading process.
Summary
Fair Value Gaps can be a useful way to study strong price movements and potential areas of interest on a chart.
Their usefulness, however, should not be exaggerated.
An FVG does not tell you with certainty what the market will do next.
Price may return to it.
Price may ignore it.
Price may move through it.
Price may react temporarily.
Or price may never revisit it.
That uncertainty is a normal part of financial markets.
The most responsible way to study FVGs is therefore to treat them as one analytical observation among many.
Start with the broader market structure. Identify the FVG according to a consistent definition. Study its location and surrounding price action. Consider relevant support, resistance, liquidity and other technical information. Most importantly, define what would invalidate your analysis and manage risk responsibly.
The goal of learning Fair Value Gaps should not be to find a guaranteed way to predict price.
It should be to develop a more structured understanding of how price behaves.
Educational Disclaimer
This article is provided for educational and informational purposes only. It does not constitute financial, investment, trading, legal or other professional advice.
Forex, Gold, cryptocurrency, CFDs and other financial products can involve substantial risk of loss. Fair Value Gaps, Smart Money Concepts, ICT-style analysis, market structure, liquidity, Order Blocks and related technical-analysis concepts are educational frameworks and do not guarantee profitable results or accurately predict future price movements.
Past market behavior does not guarantee future results.
Before making any financial decision, conduct your own research, understand the risks involved and consider consulting an appropriately qualified financial professional where appropriate. Never trade with money you cannot afford to lose.
About NaijaTrade
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