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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
Unmitigated Gaps
: Ensure the gap hasn’t been retested, as its effectiveness decreases post-retest.
Size Matters
: Larger gaps are generally more reliable due to a stronger buyer-seller imbalance.
Positioning
: Use tools like the GAN box to prefer gaps in advantageous positions within a movement.
Avoid Key Levels
: Ignore fair value gaps that form near major support or resistance levels.
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
Inversion Gap Strategy
:
Utilizes a previously broken fair value Gap as a resistance level upon retesting.
Initiate opposite trades to the original direction.
Fibonacci Retracement Combination
:
Integrate fair value gaps with Fibonacci levels, focusing on the 61.8% retracement.
Await close within the gap for trade entry.
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.
Transcript
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