Fair Value Gap, Inverse Fair Value Gap Strategy

Discover an SMC-based strategy using Fair Value Gaps and Inverse Fair Value Gaps on Forex, Futures, and Nasdaq for long entries around the New York session.

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: strategy
  • Timeframes: 4 horas, 1 minuto
  • Markets: Forex, Futuros, Nasdaq

Indicators used

  • Fair Value Gap (FVG)
  • Inverse Fair Value Gap
  • Divergence

Source video

Decoded from: ¡La Estrategia Que Las Empresas De Fondeo No Quieren Que Sepas! by Gerard Garcia — watch the original

Key timestamps:

  • 0:14 - Step 1: Mark Fair Value Gap on 4H
  • 0:27 - Step 2: Mark internal liquidity before NY session
  • 0:36 - Step 3: Wait for liquidity sweep and Inverse Fair Value Gap at 9:30 NY time
  • 0:58 - Step 4: Look for divergence in a related pair
  • 1:08 - Entry and Stop Loss
  • 1:15 - Take Profit and Break Even management

Strategy overview

A fair value gap is the imbalance a fast, one-sided move leaves behind on the chart, and an inverse fair value gap is that same zone after price fails to respect it and flips its meaning from support to resistance (or the reverse). This entry decodes a Spanish-language video from Gerard Garcia, published under the title "¡La Estrategia Que Las Empresas De Fondeo No Quieren Que Sepas!" — roughly, "the strategy prop firms don't want you to know." The framing is marketing, but it points at a real audience: traders working through funded-account evaluations, where a small number of clean, well-timed setups matters more than volume of trades.

What distinguishes this version from generic FVG content is that it is built as a top-down sequence rather than a single pattern. Higher-timeframe structure sets the zone of interest on the 4-hour chart, the New York session provides the timing window, and execution drops to the 1-minute chart around the 9:30 open — where the inverse fair value gap acts as the confirmation that the earlier imbalance has failed and price has changed hands. The video also layers in divergence against a correlated instrument, a habit borrowed from SMC and ICT-style workflows where one pair sweeping a level while its partner does not is read as a sign the move lacks agreement.

That compression — daily context, a fixed session window, and a minute-chart trigger — is what makes the approach demanding in practice. It requires being at the screen at a specific time, reading two instruments at once, and accepting that most days will not produce a qualifying setup. This page covers the concept and the source video's approach; the underlying reasoning for each step is presented by the author in the original video.

Topics

pine script · trading strategy · tradingview strategy · smc strategy · ict trading · price action · fair value gap strategy · inverse fair value gap · forex strategy · futures trading strategy · nasdaq strategy · 4 hour timeframe strategy · 1 minute strategy · prop firm strategy · new york session strategy

Frequently asked questions

What is the difference between a fair value gap and an inverse fair value gap?

A fair value gap is an imbalance left by a fast move, which traders often expect price to revisit and respect. An inverse fair value gap is that same zone after price has broken decisively through it — the level is then read with its role reversed, so a former demand area is treated as supply.

Why does this strategy use both a 4-hour and a 1-minute chart?

It is a top-down approach: the higher timeframe identifies where an imbalance sits and which direction is of interest, while the lower timeframe is used only to time entry inside that zone. The intent is to keep context from the 4-hour chart while accepting the tighter risk that a 1-minute chart allows.

What does divergence in a related pair add to an FVG setup?

Correlated instruments normally move together, so when one takes out a high or low and the other does not, that disagreement is read as a lack of conviction behind the move. In SMC and ICT-style workflows this is used as an extra filter rather than as a signal on its own.

Why does the New York open matter for this kind of setup?

The 9:30 a.m. New York open concentrates volume and volatility, which is when liquidity resting above and below obvious levels is most likely to be taken. Strategy Decoder extracts the structure of session-based strategies like this one from video sources so you can evaluate the timing logic and test it on TradingView before committing capital.

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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