Fair Value Gap (FVG)

Learn the Fair Value Gap (FVG) concept, an SMC strategy for identifying price imbalances. Discover how this fundamental price action setup can be used in tradin

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) Explicado Simple: La ÚNICA Estrategia Que Necesitarás by Trading Simple — watch the original

Key timestamps:

  • 0:00 - Introduction to FVG
  • 0:00 - Video content is limited to title and description, no actual strategy rules are present in the provided transcript.

Strategy overview

A fair value gap is the imbalance left on a chart when price moves in one direction fast enough that one side of the market never gets to transact at those levels. What separates this entry from the rest of the FVG catalogue is not how it defines that gap but how much weight it puts on it: the source video is titled "Fair Value Gap (FVG) Explicado Simple: La ÚNICA Estrategia Que Necesitarás" — a sufficiency claim, arguing the gap alone can stand in for the rest of a trader's toolkit rather than sit alongside liquidity sweeps, order blocks or structure shifts. That is a claim about scope, and it is the channel's, not a verified one; most SMC material treats the FVG as one term in a larger vocabulary.

The second thing worth noting is who this is pitched at. Published in Spanish by a channel called Trading Simple, the title repeats the promise the channel name already makes — "Explicado Simple" — which signals a video built to get a newcomer to recognise a gap on a chart, not to hand an experienced trader a mechanical rule set. Simplification is the product here, and it explains where the running time goes: toward what the pattern is and how to spot it, rather than toward the filtering and risk decisions that separate a concept from a tradeable plan.

The record for this entry is thin and worth being direct about. The only chapter marker captured is "0:00 — Introduction to FVG", and no transcript beyond the title and description was available, so no entry conditions, no timeframe, no instrument and no risk parameters were extracted. This page therefore points to the concept and to the source rather than presenting a decoded breakdown — for that, the concept hub and the entries with full rule sets are the better starting point.

Topics

fair value gap · fvg strategy · smc strategy · ict trading · price action · supply and demand · trading strategy · tradingview strategy · scalping strategy · swing trading · fvg trading strategy

Frequently asked questions

What is a fair value gap (FVG)?

A fair value gap is a price imbalance: a three-candle sequence in which price moves so quickly that a range of prices is left untraded by one side of the market. Smart Money Concepts traders treat that untouched range as a level price may be drawn back to before continuing.

Is the fair value gap really the only strategy you need?

That is the claim in the video's title, and it should be read as the channel's framing rather than an established fact. A gap describes context — where price moved too fast for balanced trading — but it does not by itself specify an entry trigger, a stop, a target or a filter for the many gaps that never get respected. Those decisions still have to come from somewhere.

What timeframe and instrument does this version use?

Neither is stated. The video is a general explainer with no symbol, session anchor or timeframe recorded, so the concept as presented here is instrument-agnostic. If you apply it, the timeframe choice is yours to define and test.

How do I evaluate an FVG-based approach before trading it?

Turn the idea into explicit conditions — how a valid gap is identified, what confirms an entry, where risk sits — and backtest those conditions on historical data for the instrument you actually trade. Strategy Decoder catalogues how different videos define concepts like the FVG so you can compare framings before committing to one.

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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