Learn how to identify and trade Fair Value Gaps (FVG) - one of the most powerful Smart Money Concepts for precision entries.
Fair Value Gaps (FVG) represent one of the most reliable price action setups in Smart Money Concepts trading. Understanding how institutions use these gaps can dramatically improve your entry precision.
What is a Fair Value Gap?
A Fair Value Gap occurs when there's an imbalance between buyers and sellers, creating a "gap" in price action that the market often returns to fill. These gaps represent areas where institutional orders were executed so quickly that retail traders were left behind.
Types of Fair Value Gaps
- Bullish FVG: Forms during upward price movement, acts as support
- Bearish FVG: Forms during downward price movement, acts as resistance
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Mike Chen
2 days ago
This is exactly what I needed! The explanation of FVGs was crystal clear. I've been trading for 6 months and this finally clicked for me. Thank you!
Sarah Williams
5 days ago
Great article. One question though - how do you distinguish between a valid FVG and just a regular gap? Is there a specific criteria you use?
David Kumar
1 week ago
Applied this strategy on EUR/USD this week and got 3 clean entries. The key is patience and waiting for higher timeframe confirmation.