The mechanism to win in trading with FVG (Fair Value Gap)

When institutional investors move the market, prices can suddenly soar. In the process, “unfilled gaps” occur—this is known as FVG (Fair Value Gap).

Why does FVG work?

FVG is not just a gap on the chart. It's the footprint of institutions. When large orders are executed, liquidity cannot keep up and the price jumps. Then smart money returns to this area to complete positions.

Specific Structure:

• Bullish FVG: Bearish candle → Strong rise → Gap remains
• Bearish FVG: Bullish candle → Strong decline → Gap remains

Advantages for Trading:

• High probability entry: Prices tend to return to fill the gap.
• Clear stop loss: The edge of the gap is a natural S/L point
• Supports all time frames: from 1-minute scalping to daily swing trading

Multi-Timeframe Alignment is Key

What if a 1-hour FVG is formed within a 4-hour FVG? It is a high probability zone. Because the institutional imbalance overlaps across multiple time frames.

How to use:

1. Start from a high TF (4H or daily) → Mark major FVGs
2. Lower to a low TF (15 minutes or 1H) → Look for new FVG within the upper zone
3. Wait for structural changes in lower TF or liquidity sweeps to enter.

⚠️ Note: FVG is not万能

In strong trends or news-driven markets, prices may break through FVG without regard. The reason is:

• The gap has already been filled at a low TF.
• Macro catalysts overwhelm the technicals
• The FVG is too small or there is no resonance with other levels.

Countermeasures: Always combine volume, structure (BOS/CHOCH), and liquidity. FVG is dangerous on its own.

Combo Strategy

To improve the accuracy of FVG, combine it with the following:

• Market Structure: Confirm the validity of FVG with BOS/CHOCH
• Volume Analysis: Alignment with Volume Gap
• RSI/Stochastics: Oversold/Overbought near FVG
• Liquidity Zone: Equal highs/lows, swing points
• Order Block: Institutional Accumulation/Distribution Mark

The essence of smart trading is to read where institutions take profits and where they enter the market. FVG is that map.

Finally: Verify it yourself on the chart. Check out SOL and other pairs on TradingView. You'll be amazed at how often FVG functions as support/resistance or a launchpad for big moves.