FAIR VALUE GAP

Learn what a Fair Value Gap (FVG) is and how to identify it on charts. This guide explains FVG as an institutional imbalance, ideal for market analysis.

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: educational

Indicators used

  • Fair Value Gap (FVG)

Source video

Decoded from: FAIR VALUE GAP "FVG" en 5 minutos ⏱️ by Visual Trading - Análisis y Formación — watch the original

Key timestamps:

  • 0:00 - Introduction
  • 0:00 - Explanation of Fair Value Gap

Strategy overview

A fair value gap is the untraded imbalance left behind when price moves in one direction fast enough that a three-candle sequence never fills the space between the first and third candle. This entry decodes a video that treats that definition as the whole lesson: its runtime is an introduction followed by a single explanation segment, with no trade plan, no session filter, and no entry sequence attached to it.

The framing comes from the source itself. "FAIR VALUE GAP \"FVG\" en 5 minutos" is published by Visual Trading - Análisis y Formación, a Spanish-language education channel, and the title sets the contract explicitly — five minutes, one concept. That format decides what the video can and cannot deliver: it is built to get a viewer to the point where they can identify and mark a gap on their own chart, and it stops there. For traders who keep meeting FVG references inside longer SMC material without ever getting the term defined cleanly, that narrow scope is the point rather than a limitation.

Because the video presents the concept without committing to a mechanical setup, no ruleset was extracted from it — there is no stated timeframe, no bias filter, and no risk definition to extract. The decisions a working system would need are exactly the ones an explainer of this length leaves open: which timeframe the gap is marked on, whether a partially filled gap still counts as valid, and whether the gap has to form after a liquidity event to be worth trading. This page covers the concept and the source; the operational answers come from strategies that state them.

Topics

fair value gap · fvg strategy · smc strategy · ict trading · price action · trading strategy · pine script · tradingview strategy · order block · imbalance trading · liquidity gap · market imbalance · institutional trading

Frequently asked questions

What is a fair value gap (FVG)?

A fair value gap is a price imbalance created when a strong directional move leaves a gap between the wicks of the first and third candle in a three-candle sequence — a zone where transactions did not occur on both sides, which many SMC traders expect price to revisit later.

Does this video explain how to trade the FVG or only what it is?

Only what it is. The source is a five-minute conceptual explainer structured as an introduction plus a single explanation segment, so it defines and illustrates the gap rather than presenting entries, stops, or targets.

What language is the source video in?

Spanish — Visual Trading - Análisis y Formación is a Spanish-language trading education channel. The concept itself is language-independent, and the terminology (fair value gap, FVG) is used untranslated in Spanish SMC content.

What do I still need to decide after learning the FVG concept?

The parameters a short explainer leaves open: the timeframe you mark gaps on, whether a partially filled gap remains valid, and what has to happen around the gap before you act on it. Strategy Decoder catalogs multiple FVG-based strategies, which lets you compare how different sources answer those questions.

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.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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