If you've been trading Forex for a while, you probably encounter the same problem as us—that is, the price swings up and down so violently that finding entry points becomes very difficult. When you first discover FVG, it feels like a whole new world opens up.

FVG or Fair Value Gap is the price gap that occurs on the chart when the price moves rapidly. It usually happens during market close or low liquidity conditions. The price jumps over a range without any trading, creating a gap. Many traders see FVG as a magnet that attracts the price back; the price often returns to fill this gap.

Let's look at the components. FVG consists of 3 candlesticks moving in the same direction. The first and third candlesticks create the gap, while the second one is called the Imbalance Candle. It signals that an FVG is about to occur. This gap indicates market imbalance caused by heavy trading in one direction.

Why is FVG important? Because it offers a clear profit opportunity. It can be used on any timeframe—hourly, minute, or daily. Best of all, it's easy to learn; even beginners can apply this technique. However, the downside is that the price doesn't always return to the FVG; sometimes it just passes through. Therefore, don't rely solely on FVG; combine it with other analysis methods.

When does an FVG occur? There are many factors, such as unexpected news that can trigger rapid trading. Important economic data, like changes in interest rates, can also cause FVG. Institutional investors' trading activity plays a role as well. Often, FVG appears during market open or close, or over the weekend.

There are two types of FVG: Bearish Gap, which has three consecutive red candles, and Bullish Gap, with three consecutive green candles. In each case, the price tends to revert back to the FVG zone.

Trading with FVG isn't too complicated. First, determine the trend direction. If the price makes higher lows, it's an uptrend. If it makes lower highs and lower lows, it's a downtrend. Second, identify support and resistance zones. In an uptrend, look at support zones; in a downtrend, look at resistance zones. Third, set stop-loss and take-profit levels. Risk management tools are very important.

Tips for successful FVG trading include using multiple indicators together to support decision-making. Setting stop-losses is essential to protect profits. Wait for market confirmation before entering a trade. Be patient and wait for the most opportune moment. Pay attention to liquidity, especially if the FVG zone is near the previous day's high or low.

In summary, FVG is a valuable tool for Forex chart analysis that can help increase profit opportunities. But it must be used correctly and not relied on alone. Practice using FVG alongside other analysis methods to achieve the best results.