---
title: 'Liquidity + FVG = Profit'
source: 'https://youtube.com/watch?v=SoVD74zm_bw'
video_id: 'SoVD74zm_bw'
date: 2026-08-19
duration_sec: 60
channel: 'TradingLab'
---

# Liquidity + FVG = Profit

> Source: [Liquidity + FVG = Profit](https://youtube.com/watch?v=SoVD74zm_bw)

## Summary

This video presents a professional trading strategy that combines liquidity and fair value gaps (FVGs) to identify high-probability entry points. The core concept is that liquidity acts as a price target, while fair value gaps serve as entry zones, with a specific focus on inversion fair value gaps as a bullish signal.

### Key Points

- **Core Strategy: Liquidity + FVG** [00:00] — The strategy uses two tactics: liquidity, which is what price targets, and fair value gaps, which are where entries are placed. This combination is presented as a highly effective approach.
- **Identifying Fair Value Gaps** [00:15] — When price makes a draw on liquidity, it creates a fair value gap. In the example, a bearish fair value gap is formed during a downside break of structure, which most traders would misinterpret.
- **Inversion Fair Value Gap** [00:31] — The presenter never enters a short on a bearish fair value gap. Instead, they wait for price to close above the gap, which is called an inversion fair value gap and is an extremely bullish signal.
- **Trade Execution** [00:43] — Once the candle closes above the gap, the trade is taken, with profit targets set at points of liquidity. The video shows the trade playing out to demonstrate the strategy.

### Conclusion

The video teaches a specific trading methodology where liquidity determines targets and fair value gaps determine entries, with inversion fair value gaps acting as a powerful bullish trigger. This approach aims to provide a systematic way to trade market structure.

## Transcript

because of how well it works. We will be using 2 tactics for our   entry. liquidity and fair value gaps. Liquidity is what the price targets.   And fair value gaps is where you enter. For example, most traders would think this  
is a break of structure to the downside. But Being the professional traders we are,   happening while doing so. While making this draw on liquidity,   price created a fair value gap. Not only that, but it s a bearish fair value gap.  
But what if I told you, I never enter  a short on bearish fair value gaps?   But instead of entering a short when price hits  this fair value gap, we will wait for price to  
close above this fair value gap like this. This is called an inversion fair value gap   and is an extremely bullish signal. Once the candle closes above the gap.   profit at the points of liquidity. Watch the trade play out.