Fair Value Gap (FVG) Strategy – Smart Money Entry Setup

The Fair Value Gap (FVG) is one of the most powerful concepts in Smart Money Trading. It helps traders find precise entry points where the market is likely to return before continuing its move.

🧠 What is Fair Value Gap (FVG)?

FVG is a gap between three candles where price moves very fast, leaving an imbalance in the market.

• Candle 1 → Normal
• Candle 2 → Strong move (big candle)
• Candle 3 → Does not overlap Candle 1

This creates a gap (imbalance) which price often comes back to fill.

⚡ Strategy Concept

• Market makes a strong move
• Creates a Fair Value Gap
• Price retraces to that gap
• Then continues in original direction

📈 Bullish FVG (Buy Setup)

• Strong bullish move
• FVG formed below price
• Wait for price to come back into gap
• Enter BUY inside FVG zone

📉 Bearish FVG (Sell Setup)

• Strong bearish move
• FVG formed above price
• Wait for retracement
• Enter SELL inside gap

🛑 Stop Loss & Target

• Stop Loss: Below/Above FVG
• Target: Previous High/Low
• Risk Reward: 1:2 or 1:3

⏰ Best Timeframes

• 1 Min – Scalping
• 5 Min – Intraday
• 15 Min – Strong setups

⚠️ Important Rules

• Only trade clean FVG (clear gap)
• Wait for price to enter gap
• Avoid choppy markets
• Use confirmation (candle rejection)

💡 Pro Tips

• Combine with Order Blocks
• Use with CHoCH for reversal
• Confirm with BOS for trend

🚀 Final Words

FVG gives you precise entry points like professional traders. Practice this with patience and discipline for consistent results.

📌 Related Posts

• CHoCH Strategy
• Order Block Strategy
• Liquidity Grab Setup