Fair Value Gap, Breaker

Discover an SMC trading strategy using Fair Value Gaps and Breakers for entries on stocks and forex. Learn to set limit orders after displacement and a shift in

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: strategy
  • Timeframes: lower time frame
  • Markets: stocks, forex

Indicators used

  • Fair Value Gap (FVG)
  • Breaker
  • Displacement
  • Shift in Structure

Source video

Decoded from: Look For Fair Value Gap Or Breaker #daytrading #trading #daytrader #howtotrade #stocks #forex by Casper SMC — watch the original

Key timestamps:

  • 0:00 - Introduction to option two
  • 0:05 - Identifying Fair Value Gap or Breaker
  • 0:10 - Setting limits and stops
  • 0:15 - Risk-to-reward vs. mistrades

Strategy overview

A fair value gap (FVG) is the imbalance left behind when price moves too fast for both sides to transact, and a breaker is an order block that has failed and flipped its role. This Casper SMC clip is built around treating the two as interchangeable: presented as "option two" in the channel's decision flow, its point is not FVG *versus* breaker but FVG *or* breaker — you read the reaction after a displacement move and take whichever of the two the market actually leaves behind.

That either/or framing is what separates this entry from setups that hard-code a single trigger. The qualifying context is the same for both references — a displacement leg followed by a shift in structure signals that momentum has changed hands — and the FVG or the breaker simply marks where price is likely to react on the pullback. On a lower time frame that keeps the execution flexible: the same structural read can be traded off an imbalance one time and off a flipped block the next.

Because it is a short-form clip, the video foregrounds one honest trade-off rather than a full rulebook — the tension between the risk-to-reward a structural entry offers and the mistrades that come with reading reactions on a fast time frame. It walks through how to think about spotting the FVG or breaker and framing the entry and stop around it, leaving the finer execution to the trader's own testing.

Topics

fair value gap strategy · breaker block strategy · smc strategy · ict trading · price action · tradingview strategy · forex strategy · stocks trading strategy · lower time frame trading · swing trading · trading strategy · pine script · fair value gap forex strategy

Frequently asked questions

What is the difference between a fair value gap and a breaker?

A fair value gap is an imbalance left by a fast, one-sided move that price often revisits; a breaker is an order block that fails and then flips to act as support or resistance in the opposite direction. This video uses them as two alternative reference points for the same kind of entry.

Why does this strategy say 'fair value gap OR breaker'?

Because the setup doesn't depend on one specific pattern. After a displacement move and a shift in structure, the trader takes whichever the market leaves behind — the FVG or the breaker — so the same structural read can be executed flexibly instead of waiting for one fixed trigger.

What role do displacement and shift in structure play here?

They provide the context that qualifies the entry. Displacement is the strong, fast leg that signals intent, and a shift in structure confirms direction has changed hands — together they tell you a fair value gap or breaker is worth trading rather than ignoring.

How can I test a fair value gap or breaker entry before trading it?

Backtest it on historical intraday data for the timeframe and instrument you intend to trade, since reaction-based entries behave differently across markets and sessions. Strategy Decoder extracts the structure of strategies like this one from video sources so you can evaluate and test them on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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