FVG guide

Fair value gap: how to spot and trade it

A fair value gap is a price imbalance left by a strong move: the wick of candle one and the wick of candle three do not overlap. Price often comes back to fill part of it before continuing.

How to identify an FVG

Look at three consecutive candles. In a bullish FVG the low of candle three is above the high of candle one; the space between them is the gap. The opposite applies for a bearish FVG.

How to trade it

Trade FVGs in the direction of structure. Wait for price to return into the gap, ideally around its midpoint (consequent encroachment), with a stop beyond the candle that created it.

FVGs in FIMO X

Every gap is tracked as fresh, partially filled or filled. Only fresh gaps aligned with the higher-timeframe trend become entry zones.

Frequently asked questions

Do fair value gaps always get filled?

No. Many are partially filled, some never. That's why confirmation and a stop are essential.

What is an inverse FVG?

A gap that gets fully broken through and then acts as support or resistance from the other side.

Best timeframe for FVG?

Use H1/H4 for direction and M15 or lower for entries.

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Trading involves a high risk of losing capital. FIMO X provides analysis tools and is not financial advice. Past results do not guarantee future results.