An FVG is basically a gap in price that you’ll see happen all the time. They form when price moves up or down really fast, leaving a little hole behind. Usually, you can expect price to come back to this gap, fill it up, and then keep going in the direction it was headed.

An FVG is always made of 3 candles.

When bullish: You mark the gap from the top wick of candle 1 to the bottom wick of candle 3.

When bearish: You mark the gap from the bottom wick of candle 1 to the top wick of candle 3.

Tip: For a bullish FVG, the top wick of candle 1 cannot overlap the bottom wick of candle 3, otherwise it’s not a real FVG. For a bearish one, the bottom wick of candle 1 cannot overlap the top wick of candle 3.

Bullish FVG:

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Bearish FVG:

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