What Is FVG

Why It Matters

FVGs offer a practical, liquidity-focused way to identify likely areas of future price movement and trade opportunity, shifting analysis from superficial patterns to underlying order flow dynamics. Using FVGs can improve timing for entries and exits by targeting zones where market imbalance suggests a higher probability of fills.

Summary

The video explains 'fair value gaps' (FVGs) as price zones created by rapid moves where orders went unfilled—essentially unfulfilled buy or sell interest. The presenter frames trading as an exchange: if a seller’s price is too high buyers won’t transact, leaving gaps that later attract price to fill them. Traders often obsess over candle patterns or Fibonacci levels, but FVGs are price-structure signals showing where demand or supply was stronger than available liquidity. Recognizing these gaps helps anticipate where price may return to satisfy unmet orders and resume broader trends.

Original Description

Truth is, FVG is nothing but a label the internet has used to name a pattern in the market. But do you truly understand what it means if we forget about the labels?