Dear ,

Welcome to Day 5 of our technical series.

Today, we’ll talk about something that looks fancy,

But it is actually very simple once you understand it:

Fair Value Gaps (FVG)

Most traders use it wrongly.

But once you learn the correct way,

FVGs give very clean entries and help you avoid bad ones.

Let’s make it super simple.

DAY 5 TOPIC: Fair Value Gaps (FVG)

An FVG is just an imbalance in the market.

It means:

Price moved so fast in one direction

that it didn’t trade fairly on the way.

This creates a small empty space on the chart.

Whenever the market leaves an imbalance,

it usually comes back to fill that gap.

That “fill” gives you a very clean entry.

How to identify an FVG

Look for three candles:

For a Bullish FVG (Price wants to go up):

• Candle 1 - big bullish candle
• Candle 2 - another bullish candle
• Candle 3 - leaves a gap between Candle 1’s high and Candle 3’s low

This empty space = Bullish FVG

Price likes to come back and fill it before moving up again.

For a Bearish FVG (Price wants to go down):

• Candle 1 - big bearish candle
• Candle 2 - another bearish candle
• Candle 3 - leaves a gap between Candle 1’s low and Candle 3’s high

This empty space = Bearish FVG

How to use FVG for entries

• Mark the FVG zone

Just mark the small gap with a box.

• Wait for the price to return to the zone

No need to chase.

Just wait.

• Enter when the gap is filled + rejection candle appears

That’s your precise entry.

• Stop-Loss

Below the FVG (for long)

Above the FVG (for short)

• Targets
• Target 1 - next structure (Swing)
• Target 2 - previous high/low

RR is usually very good because FVG entries are tight.

Why FVG works

Because:

• This is where institutions left orders
• Price comes back to “balance” the move
• This level creates a clean reaction
• Retail traders usually miss this entry
• But you’ll catch it easily now

Now, Backtest in the Chart

Open your 5-minute or 15-minute chart.

Zoom out a little.

Look for:

• a fast move (up or down)
• a small “empty area” between candles

Mark it.

Wait for the retest.

You will clearly see how the price reacts from that zone.

I can also make a video on this topic. Reply to this email in case if you face difficulties understanding.

With Love and Respect

Samir