FVG

Learn the FVG (Fair Value Gap) trading strategy for identifying inefficiencies in the market. This SMC strategy helps traders anticipate price movements.

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: educational

Indicators used

  • FVG (Fair Value Gap)

Source video

Decoded from: FVG EN ACCIÓN by Institucional Trading Lab — watch the original

Strategy overview

A Fair Value Gap (FVG) is the price imbalance left behind when a candle moves so fast that it skips a range no opposing order could transact in — a three-candle void that price often returns to later. This entry decodes "FVG EN ACCIÓN" from the Spanish-language channel Institucional Trading Lab, and the title sets its intent: the focus is the gap *in action* — watching the imbalance appear on the chart and then behave — rather than a written checklist of entry rules.

That demonstration-first framing is what separates this video from the more mechanical FVG treatments. Instead of casting the gap as a fixed trigger inside a larger sequence, it foregrounds recognition and reading: how the imbalance forms in real time, how to mark it on the chart, and what tends to happen as price is drawn back toward the unfilled zone. It is FVG taught by observation — the visual signature of the void and its reaction — through the lens of an institutional-flow (SMC) reading of the market.

Because the emphasis is on seeing the concept play out rather than on a rigid rule set, this page centers on the FVG idea itself and how this particular source presents it. Use it to build intuition for spotting the imbalance and understanding why price revisits it, then pair that with your own testing before treating any gap as a standalone signal.

Topics

fvg trading strategy · smart money concepts · smc strategy · fair value gap · ict trading strategy · pine script · tradingview strategy · trading strategy · price action · smc

Frequently asked questions

What is a Fair Value Gap (FVG)?

An FVG is a price imbalance created by a fast, one-sided move — a gap between candles where the market never transacted evenly. In SMC methodology it marks an area price is often drawn back to before continuing, which is why traders watch it as a zone of interest rather than a guaranteed reversal point.

What does "FVG in action" mean in this video?

The channel Institucional Trading Lab frames the video around demonstration: seeing the imbalance form on the chart and observing how price reacts to it, rather than teaching a fixed recipe of entries and exits. The emphasis is on recognizing the gap and reading its behavior.

Is a Fair Value Gap a buy or sell signal on its own?

Not by itself. An FVG is an imbalance zone, and its meaning depends on context — the surrounding structure, the direction of the move that created it, and whether price has already engaged nearby liquidity. It's a reference area to interpret, not a standalone trigger.

How can I study FVG setups like this one?

Strategy Decoder catalogs strategies from video sources like this one so you can study the concept and test it on TradingView. Build intuition for the imbalance first, then validate on historical data before risking 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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