Fair Value Gaps (imbalances between buyers and sellers) tend to get filled as price returns to them. Enter at the 50% level of a bullish FVG during a return, targeting the next liquidity pool above.
Indicators Used
Rules
📈 Long FVG Fill
- Identify bullish FVG (gap between candle 1 high and candle 3 low in an up-move)
- Higher-timeframe bias must be bullish (above EMA 50 on higher TF)
- Wait for price to pull back into the FVG zone
- Enter long at the 50% level of the FVG (consequent encroachment)
- Stop: just below the FVG low
- Target: previous swing high (buy-side liquidity)
📉 Short FVG Fill
- Bearish FVG in a downtrend, higher-TF below EMA 50
- Price rallies into the gap zone
- Enter short at 50% of bearish FVG
- Stop: above FVG high
- Target: sell-side liquidity below
50% FVG
Entry Point
3:1
Target R:R
💡 Pro Tip
Not all FVGs fill. The probability increases dramatically when the FVG aligns with a higher-timeframe order block or the 50% retracement of the impulsive leg that created it. Trade only these high-confluence FVGs.