{"id":653029,"date":"2025-03-28T15:00:04","date_gmt":"2025-03-28T14:00:04","guid":{"rendered":"https:\/\/ftmo.com\/?p=653029"},"modified":"2025-03-28T17:10:31","modified_gmt":"2025-03-28T16:10:31","slug":"boost-your-trading-edge-with-the-fair-value-gap-strategy","status":"publish","type":"post","link":"https:\/\/ftmo.com\/en\/boost-your-trading-edge-with-the-fair-value-gap-strategy\/","title":{"rendered":"Boost Your Trading Edge with the Fair Value Gap Strategy"},"content":{"rendered":"
Have you ever noticed sudden price movements in the market and wondered how to take advantage of them? The Fair Value Gap (FVG) strategy<\/strong> is a powerful price action method that helps traders spot aggressive market moves.<\/em><\/p>\n A Fair Value Gap<\/strong>\u00a0refers to a price gap created by aggressive buying or selling pressure. These imbalances indicate strong institutional activity, providing traders with high-probability trade setups. It is also known as an imbalance<\/strong>, Price Value Gap<\/strong>, or 123 gap<\/strong>.<\/p>\n FVGs typically occur during periods of high market volatility, often triggered by:<\/p>\n When these factors cause sharp price movements, a gap is created between candles, offering a potential trading opportunity.<\/p>\n The Fair Value Gap<\/strong> strategy is a price action method that works well in both trending<\/strong> and range-bound markets<\/strong>. Unlike indicator-based strategies, it relies solely on price action, making it ideal for beginners and advanced traders as well.<\/p>\n Important note<\/strong>: If there is no additional FVG between your entry and the first Profit Target, simply set the Stop Loss to break even<\/strong> and wait for another FVG to be formed.<\/p>\nWhat is the Fair Value Gap strategy?<\/h2>\n
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When is a FVG formed?<\/h2>\n
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How to trade using the FVG strategy<\/h2>\n
Entry rules example for trading the Fair Value Gap<\/h3>\n
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Exit rules example: Stop Loss & target strategy<\/h3>\n
Stop Loss placement:<\/h6>\n
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Target strategy:<\/h6>\n
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Trade demonstration with trailing Stop Loss<\/h3>\n