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Fair Value Gap (FVG) Explained: 3 Best Strategies Revealed

BY lx8iq
August 27, 2025
Public
Private
9326 views

Video Title: Mastering Fair Value Gaps in Trading

Introduction

  • Fair value Gaps are a powerful trading concept, yet often used incorrectly.
  • Not all fair value gaps are equal; some are more likely to result in profitable trades.
  • The video reveals hacks to identify high-probability fair value gaps and three top trading strategies.

Understanding Fair Value Gap

  • A fair value Gap forms on a chart when price moves sharply in one direction, leaving a gap on the candlestick.
  • The price often reverts to the gap, providing potential trade entry points.
  • To identify a fair value Gap, look for a large candle between two smaller candles with no overlap between the first and third candles.

Five Hacks for Identifying Profitable Fair Value Gaps

  1. Unmitigated Gaps: Ensure the gap hasn’t been retested, as its effectiveness decreases post-retest.
  2. Size Matters: Larger gaps are generally more reliable due to a stronger buyer-seller imbalance.
  3. Positioning: Use tools like the GAN box to prefer gaps in advantageous positions within a movement.
  4. Avoid Key Levels: Ignore fair value gaps that form near major support or resistance levels.
  5. Post Break of Structure: Gaps forming after a break of structure provide high win-rate setups.

Entry Technique

  • Enter trades at the midpoint of the identified fair value Gap using the GAN fan tool.
  • Set stop-loss at the point of invalidation.

Advanced Trading Strategies

  1. Inversion Gap Strategy:

    • Utilizes a previously broken fair value Gap as a resistance level upon retesting.
    • Initiate opposite trades to the original direction.
  2. Fibonacci Retracement Combination:

    • Integrate fair value gaps with Fibonacci levels, focusing on the 61.8% retracement.
    • Await close within the gap for trade entry.
  3. Multi-Timeframe Confirmation:

    • Utilize higher timeframes to identify trends and execute trades aligning with these trends.
    • Incorporate momentum indicators like MACD for further confirmation.

Platform Recommendation

  • Partnered with SimpleFX, providing integrated trading and analysis tools.
  • Features include multiple instruments, low fees, and a $40 deposit bonus for new users.

Conclusion

  • Trading fair value gaps can be lucrative with a good strategy and platform.
  • The video promotes deeper understanding through mastering fair value gaps and seamlessly integrates things like order blocks.