Recently, while looking at trading charts, I was reminded of the concept of FVG again. Many people still haven’t really figured out what this tool is truly for.

Simply put, FVG stands for fair value gap. When the market is driven hard by buy or sell pressure, the price skips over certain areas, leaving a gap on the chart. That gap represents where the market has deviated from fair value.

I’ve noticed that many traders overlook one key point: the way FVG appears on K線 is actually very clear. When it’s bullish, a gap forms between the upper wick of the first candle and the lower wick of the third candle—that’s the FVG you should look for. For bearish, it’s the opposite. The key is that these gaps must not have overlapping candles; otherwise, they become invalid.

Why is FVG worth paying attention to? Because the market tends to self-correct. These price gaps can’t exist forever. In the end, the market returns to fair value, and then continues moving in the original direction. That’s where the trading opportunity lies.

The method for identifying FVG is actually not difficult: on crypto trading charts, look for those obvious three-candle patterns, and then confirm whether the gap is valid. Once you grasp the logic behind FVG, you’ll be able to understand market dynamics more deeply.

This tool is indeed helpful for finding trading opportunities, but remember—this is not financial advice. Everything still needs to be researched and verified by yourself. 📈