Want to take your trading to the next level?
In this article, we dive into Fair Value Gaps (FVG) a powerful concept used by smart money traders to spot high-probability trade setups.
Whether you’re trading $BTC , Ethereum, or Altcoins mastering FVGs can help you front-run the market.
🔍 1. What is a “FVG”
A Fair Value Gap (FVG) is a price imbalance on the chart, usually created when there’s a strong price movement that skips over levels of supply or demand.
In simple words:
👉 It’s a “gap” where no trading activity happened and price often returns to fill it.
These gaps are used by institutions and algos to hunt liquidity.
FVG = Hidden zones where price is likely to return before continuing its trend.
📚 2. Types of FVG
There are 3 key types of Fair Value Gaps:
🔹 a) Bullish FVG
• Formed when price moves up too quickly
• Leaves a gap between the low of one candle and the high of the previous one
• Acts as a future buy zone
🔹 b) Bearish FVG
• Created when price drops fast
• Leaves a gap between the high of one candle and the low of the previous one
• Becomes a future sell zone
🔹 c) Reversal FVG
• Appears near market tops or bottoms
• Suggests a strong reversal is incoming
• Often used for sniper entries
🧠 3. How to Identify an FVG?
Look for a 3-candle pattern:
✅ If the middle candle is large, and there’s a gap between its wick and the adjacent candles,
you’ve likely spotted an FVG.
Example (Bullish FVG):
• Candle 1: Small red
• Candle 2: Big green (explosive move)
• Candle 3: Small green
👉 Gap forms between the high of Candle 1 and low of Candle 3.
💡 Tools like TradingView or Binance Advanced Chart** can help you mark and monitor these zones.
🎯 Why FVGs Matter in Crypto Trading
• $BTC , $ETH , and other top coins often respect FVG levels
• FVGs act as magnetic zones price returns to fill them
• Great for scalping, swing trading, and sniper entries
✅ Pro Tips:
• Combine FVGs with liquidity zones, order blocks, or volume spikes for high conviction trades
• Use FVGs on higher timeframes (1H, 4H, Daily) for better accuracy
🔁 The Market Leaves Clues FVGs Are One of Them.
🎯 Want to trade like the pros?
Start spotting FVGs and unlock your edge on Binance where top traders trade smarter.
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