--- title: 'Fair Value Gap Trading Strategy Explained | FVG Explained | SMC' source: 'https://youtube.com/watch?v=UsagdZ1J59c' video_id: 'UsagdZ1J59c' date: 2026-07-31 duration_sec: 2082 --- # Fair Value Gap Trading Strategy Explained | FVG Explained | SMC > Source: [Fair Value Gap Trading Strategy Explained | FVG Explained | SMC](https://youtube.com/watch?v=UsagdZ1J59c) ## Summary This video breaks down the Fair Value Gap (FVG) trading concept used in Smart Money Concepts, covering its definition, bullish and bearish structures, and a step-by-step strategy for trading the 50% fill. The presenter explains why FVGs form due to institutional order flow, which types of FVGs are worth trading (fresh, higher timeframe, nested) and which to avoid. Real chart examples illustrate how to mark and trade FVGs in crypto and index markets. ### Key Points - **FVG as a Smart Money Concept** [00:01] — FVG (Fair Value Gap) is a key concept in smart money trading, relevant to forex, crypto, and stock markets. The video explains its definition, how to trade it, and which FVGs to avoid. - **Definition of Fair Value Gap** [03:12] — FVG stands for Fair Value Gap, which is an area on the chart where no trading has taken place. - **FVG Explained** [04:50] — A Fair Value Gap is a small empty space where price moved too quickly and later returns to fill that space. - **Imbalance Creates FVG** [05:06] — Big candles create an imbalance between buyers and sellers; price corrects this imbalance by returning to the FVG area. - **Bullish FVG Structure** [07:51] — A bullish FVG consists of three candles; the middle candle is the biggest. The gap is marked between the high of the first candle and the low of the third candle. - **Candle Color Rules** [08:48] — The color of the first and third candles doesn't matter, but the second candle must be big and, for bullish, green; for bearish, red. - **Bearish FVG Structure** [13:43] — A bearish FVG is marked between the low of the first candle and the high of the third candle, with a large red middle candle. - **Trade Entry at 50%** [10:49] — Mark 50% of the FVG; wait for price to reach it. Enter when a reversal candle forms at the 50% level. - **Entry, Stop Loss and Targets** [11:31] — Place SL below/above the confirmation candle low/high and aim for 1:2 or 1:3 risk-reward targets. - **Why FVG Matters** [15:30] — Institutions move large positions and can't fill all orders at once, creating an imbalance and leaving FVGs behind. - **Fresh FVG** [19:15] — A fresh FVG is one that has never been filled before; these are the most tradeable. - **Higher Timeframe FVGs** [20:22] — For crypto, use 4-hour, 1-hour, and daily FVGs. Avoid FVGs below 15 minutes. - **Nested FVG** [21:27] — A nested FVG is an FVG within an FVG on a higher timeframe, increasing the probability of the trade working. - **FVGs to Avoid** [31:45] — Avoid small timeframe FVGs, FVGs inside chop/range, already-filled FVGs, tiny FVGs, and FVGs against the higher timeframe trend. ### Conclusion The video delivers a complete FVG trading framework: trade fresh FVGs on higher timeframes, wait for 50% fill with price action confirmation, and avoid FVGs inside ranges, on tiny timeframes, or against the trend. Consistent application of these rules can give traders an edge when using Smart Money Concepts. ## Transcript , if you trade in forex , if you trade in stock markets , use the smart money concept, then you must have heard about FVG. Which Which FVG should not be traded? What is my strategy? How is a bullish fair value gap formed? How is Bearish FVG formed? How to trade it? Now the question is why does FVG matter ? Why does FPG matter? Now if you want to create any fair value gap. Ok? You can make it in any time frame, whether you want to make it for 1 hour, 4 hours, 15 minutes time frame, make it daily, make it weekly. Now the question in Fair Value Gap will be whether the color of the first candle and the third candle matters what to do to mark the fair value gap? short it blindly. This first scenario may not fill the entire gap. Fill 50%. After filling 50%, when we read all these concepts in detail, then we that brother, there are so many things to learn in the market. And what do we do ? If we feel like it, we have to do it bye [music]. The market comes down and fills it. Then it goes up from here. Then the market comes down. Then here if you question that on which time frame should we use FBG? So in crypto I would recommend that brother you [music] daily like this when FPG is created and not within one time frame, when FPG is created and not within one time frame, FPG of another time frame of smaller time frame is being created. So this is not financial advice. Please do your own research and trade at your own risk. So hello friends, welcome to the channel. Welcome all of you to another new and amazing video. In today's video, people are going to talk about FVG. So if you trade in crypto markets, if you trade in forex, if you trade in stock markets, use the smart money concept, then is FVG? Fair Value Gap. Even if you have not heard about FVG and you are into trading, then this video is very important because in this I will not only tell you about FVG but I am also going to tell you secret tricks by which you can trade FVG well and which FVG you should trade, which FVG you should not trade, what is my strategy, I am going to talk about all this in detail, so it is going to be a value packed video, what you have to do is you have to like the video right now, you have to subscribe to the channel, you have to whatever time you will invest in this video, that time will be absolutely worth it and you are going to learn such a smart money concept which is going to create a new edge in your trading. not waste much time, let's start the video directly and talk about what we are going to cover in today's video. First of all, let's talk about the very basics, what is FVG? How many types of FVG are there? Why Does FVG Matter? I mean, why does FVG matter ? Why should you use FVG ? What is the logic behind this? Let us should you trade after that? Because many fair value gaps are created in the market. We will discuss who should trade and who should not trade. And don't trade these FVGs. Which one should not be traded? We are going to talk about that too. So you are going to learn a lot in today's video and very definitely you are going to get learning here. First of all, what is FVG? The full form of FVG is Fair Value Gap. I will write it down. The full form of FBG is Fair Value Gap. Now see what does gap mean? A gap means an area where trading has not taken place. Ok? There has been no trading. When do gaps get created in our Indian stock market? It happens overnight that the market closes at say 3:30. For example, Nifty closed here at 25,200 and the next day, suppose some very positive news comes. Nifty opens at 25,300. So there's a 100 point gap up here. Now what does this 100 point gap up mean? So the next day the market opens directly here. So this gap of 100 points is an area where no trading has taken place. seen in the fair value gap that when a fair value gap is formed on the chart, Now what does trading properly mean? Proper trading means that if there are buy orders, there are also sell orders to fulfill them. Ok? There are sell orders and there are also buy orders to fulfill them. When buy orders overwhelm sell orders, the market makes a big move. When the market makes a big move, FVG is born there. The Fair Value Gap is born. Now what does this read as by definition ? Understand that. A fair value gap is a small empty space. This small empty space. How is this made? How is a bullish fair value gap formed? How is a Bearish FBG formed? How to trade it? Who should not trade? I will clear all your doubts. Your brother will teach you everything free of cost. Just what do you have to do ? You have to like the video, subscribe to the channel and leave a nice positive comment. That definitely makes our day. FVG is a small empty space on the chart where the price moved too quickly and then comes back to fill that space later. Price to move quickly. That is, basically in FVG the market forms big candles. When it forms big candles, an imbalance is created somewhere. Between whom is imbalance created? It is created between buyers and sellers. is created, what does the price do to correct this imbalance? Comes on FBG. When the price reaches FBG, a very good trading opportunity how you should plan those trading opportunities and how you should trade them. So like right now we're learning the fair value gap. By doing this you will learn all the concepts of trading. Because trading is a skill that anyone can learn. And this is a skill that makes you financially independent. And to upskill your trading, XM has brought the biggest demo trading XM has brought the biggest demo trading competition XM Top Trader in which you do is no entry fee. 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Now let's talk about types of FBGs in which there are basically two types. One is bullish. One is bullish. Ok? One is bearish. Isn't it? Now Ok? You have to make it in any time frame. Whether you make it in 1 hour, 4 , daily pay, weekly pay. The Fair Valley Gap consists of three candles. Ok ? First of all let's talk about bullishness. Ok ? Let's talk about our first bullish scenario. Bullish FVG take note. Please pay attention. What happens in a bullish FVG? A candle is made, right? And what happens after that ? A strong green candle formed. Isn't it ? [sound of clearing throat] After that, Let's Suppose became a red candle. Let's Suppose became a red candle. Ok? So let's name the candles. We will call it Candle One. This will be called Candle Two and this will be called Candle Three. Identifying the fair value gap is very simple. The second candle in the fair value gap is the biggest one. What is a second candle? That is the biggest. That is a gap. A small candle is not a fair gap. ? The high of the first candle , the high of the first candle and the low of the third candle. which we have marked, this area which you can see on your chart, this is called you can see on your chart, this is called F VVg. And this is called bullish FVG. Why Bullish? Because the middle candle , the second candle, that is a strong , the second candle, that is a strong and big green candle. Now the question remains whether the color of the first candle and the third candle matters? The answer is no. The candle color of the first candle and the third candle does not matter. But the color of the second candle should be not matter. But the color of the second candle should be green and the candle should be green and the candle should be big. I hope you are writing all these instructions. I told you but you are writing this information. This is our Bullish FVG. I recreate Bullish FVG. Let's say the first candle is red. color of the second candle matters. It should be a strong green candle with a big body. It should be with a big body. It is a strong big green candle but it is very big. This type of candle will not work. Where did he disappear brother? This type of candle will not work. It is a big candle but with big wicks. No, it should be a big candle with a strong and big body. Meaning the majority of this candle should be covered by the body. The wick should not be covered. Isn't it? The third candle, let's suppose, is forming a green candle. Let's make the third candle well. Third candle: This green candle is being formed here. So what does one do to mark the fair value gap ? This is our first candle. This is our second candle. This is our third candle. So what does one do to mark the fair value gap? The high of the first candle and the low of the third candle. So this area that you are seeing, this is called bullish fair value gap. It is very simple. Bullish Fair Value Gap. Now this area is basically such an area, such an empty space where there were a lot of buying orders but there were no selling orders to fulfill them and because of that such a big move was seen and what happened in the wake of such a big move? An imbalance was created. And what does the market do when an imbalance is created? She tries to balance it. So what happens when the market tries to balance ? The price comes down. The price comes down to fill this gap. Ok? You don't have to take the selling side trade because it's so you have to take the buying side trade. So what you will do here is that this is your fair value gap, you have to mark a level on it which is the fair value gap. Let's suppose this fair value gap is 100 points. So you have to mark 50% of its area. Ok? Suppose this is your fair Ok? Suppose this is your fair value, this is your level and this is the level of 2080, so you have a fair value gap of 100 points, so you have to mark 50% of it, let's suppose 50% of it is coming on this area, okay mark the 50% you have to let the market come down because the market will come down, the market will come down, either the market will recover and reverse from here, it will reverse 50%, or the market will come down completely, it will form a good positive candle here, then the market will go up. So how do you trade? The simple way to trade is to let the It comes at the level of 50%. Fair value comes at the level of 50% of the gap. Don't worry. I'll show you everything on the chart. I will also show examples on the chart so that you get clarity. So it came to the level of 50%. And create a green candle here. So what can we do here ? You can place SL around its low. ? You can place SL around its low. And you can easily get targets up to 1:2 1:3. So either it comes down to around 50% and reverses from there or what could happen? Or what could be the possibility? Or another possibility could be that brother, it comes down properly. These came down properly. Fill the entire gap. If you want to go down, go down. Otherwise, if it tries to move up from here and forms a strong green candle, then you can trade above the high of the green candle. Now all you need to do is understand what a bullish fair value gap is. And I hope you have got that clarity. In an end bullish fair gap, the color of the candle matters as does the color of the second candle. The size of the second canal matters. The body of the end second candle matters. If you have not learned FPG so easily anywhere else, then you should like and share this video right now. If you want to do Many people ask me, Mac Bhai, why don't you teach all the things on the pedestal also a profitable trader. You show it in the verified period. So why don't you take the money? The simple reason for not taking money is that I am confident that I will That will automatically benefit me. My pocket will be full brother. So share the video with others so that when you are benefiting, others can also benefit. Now let's talk about the bearish fair value gap. Bearish about the bearish fair value gap. Bearish Fair Value Gap. What is a bearish fair value gap Ok? The color of the first candle and the third candle does not matter. Suppose the first one is being made. It is made of red. Ok? Second candles matter. This is your second candle. Ok? And let's say the third candle turns green. Ok? So here if you want to mark the bearish fair value gap then let's suppose we call it candle one. This is called candle two. This is called Candle Three. So if you want to mark a Fair Valley gap, take the low of candle one and the high of candle three. These two have to be combined. You can see the difference in between. This is the bearish F VVG. I am saying it again. Combine the low of candle one and the high of candle three. This is your bearish FVG. Now when Bearish FVG becomes yours. Let's make it a little to also tell you how to trade. So let's stretch this a little longer. Ok? There you have it Bearish FVG. Now what to do here? FVG. Now what to do here? Ok? You have marked 50%. Ok? What to trade now after hitting 50% mark ? Because it is bearish, we will trade for sell. So what will we do here? There are two options here. Either the market will come up, reach 50% , after reaching 50% if it forms a negative candle then we will plan a sell side trade below the low of the negative candle. This first scenario may not fill the entire gap. Fill 50%. After filling 50%, make a negative candle. ? This can go up your throat. This prop will go up. It will fill the entire gap. sell side will plan below the low of the red candle. So it is not that if a fair value gap is created then you should short it blindly. Wait for the price action to form. Otherwise, what happens many times ? All those who are trading the fair value gap will eat up everyone's SLO and then bring the market down. Therefore, it is very important to look at the price action. So till now we have understood what is fair value gap? How do you identify, create, and hold bullish and bearish fair value gaps? I hope you have got that clarity. Now the question is why does FVG matter ? Why does FVG matter? It's simple. Institutions move large positions because they can't fill all orders in one go. You have to understand that here, let's say, a bullish fair gap is being formed. Let's suppose. Ok? A bullish fair value gap is forming here. So you need to understand what is your fair value gap? Its high and its low. This is your fair value gap. So when there is this fair value gap, why does it occur? This fair value gap of yours is created because the big institutions do not trade in one lot, two lots, They trade in very huge quantities. So if they have to buy, many times the sell order is not presented in front of them. What happens when a sell order is not presented is that the candle. What happens when you make a bigger candle ? An imbalance is created. ? An imbalance is created. ? Basically tries to balance. And when he tries to balance it, So why does the fair value gap arise ? Because big players create large positions. cannot fill all the orders at once. Because there are not that many sellers or buyers available there. Hence FVG is created. That's why FVG matters. FVG shows in mitigate orders. So what basically happens ? When a fair value gap is formed, the market most of the time comes after the fair value gap is formed. It fills that gap. After filling the gap, try to take a support. If it is bullish, if it is bearish then it will try to take a resistance and then try to move up or down from there. So if Bullish FPG is forming then we should look for long trades. Support should be checked whether it is taking support at 50% or after filling the gap, then the trade will be made there and if bearish FPG is being formed then the area of ​​50% will be marked. If a negative candle is forming from there then we will sell or if the entire fair value gap is filling then a negative price action will be formed there and we will plan to sell. You have to understand this here. And these zones act as magnetic zones or magnet hides. So, in these FVGs, liquidity is hidden somewhere. The orders are hidden. And once the big players fill these orders, their job is to balance the imbalance. As soon as they complete it, the role of FVG ends and trading opportunity is created here. So understand that brother, there are so many things to learn in the market. And what do we do? If we feel like it, we should say goodbye. We think it's a sale. If you trade with fear, my brother, you will never make money. If you want to make money there has to be a method to the madness. And this is the method we teach you. They teach different methods. Learn one thing, master it. Go deep into it. Learn everything. Please learn. And if you have surface level knowledge then it is of If learning FVG, learn FVG in absolute depth. If you want me to teach FVG in the deepest way possible. Bringing you another video of Advanced FVG. Where we try many trades practically and then You guys tell me. You guys please comment. You guys please like the video. I am going to teach you another concept. Inverse FVG, this is FVG we are learning. There is an inverse FVG. So you have to get 5000 likes. I have to make 500 comments. Here you comment inverse FVG or advance FVG concept and your brother will get it for you. So I am ready to work hard. You don't have to step back. If you do not step back, you will get every type of content on this channel, due to which you will not need to take any paid course. Right? Now let's talk further. Best FBGs to trade. Which FBG should you trade now move on to the chart. In the chart I will show you how to spot FVG. And I will also show you how to spot all these FVGs so that you get complete clarity here. So which FVG should you trade ? First up is Fresh FVG. What does fresh FVG mean? Fresh FVG means brother, such a fair FVG means brother, such a fair value gap which has never been filled before. This means the market is creating a fresh fair value gap. What happens many times is that the market, for example, here I will show you more clearly in the chart, suppose this is the first candle. Ok? After that it will be a big [laughs] green brother, not red. Ok? This is a big green candle. Ok? And after that, let's say the market forms another green candle. The color of the first and third candles does not matter. Where is FVG at? FVG This one is. Ok? And FVG is this one. Ok? Now what does Fresh FVG mean? That this fair value gap has never been filled by the market before. Then it comes under the category of fresh FVG. Now suppose what the market does? The market comes down. It fills it and then goes up from here. Then the market comes down. Then if you look for trade opportunity here then this is not right. If you want to trade, then if you get fresh FBG where the market has not filled that gap before, then you can definitely trade there. So the first one is Fresh FVG. The second is the higher time frame FVG. Now many people will have the question that on which time frame should we use FVG? See, if you use anything on a larger time frame, then its hierarchy is good in larger time frames. Now, if you are trading crypto, then I would recommend that you use 4 hour one hour daily in crypto. Isn't it ? So very good you will get to see the result on fair value gap. get to see the result on fair value gap. If you go for 15 minutes, 5 minutes, 1 minute then FVG will be formed there also. But this will not work that well. 15 minutes should still work well. If you have to scalp, even 15 minutes of FVG will do. But 5 minutes of 1 minute FVG will not work. It will work only then, it will never work. So if you want to trade FVG, trade around the fair values crypto, doing forex. And even if you are doing stock market, I would recommend that you can watch the last FVG for 15 minutes. Less than 15 minutes means watch daily, weekly, hourly for 30 minutes , watch for 15 minutes. But avoid FVG with time frame less than 15 minutes. If you want to trade, trade FVG of larger time frames. And third is our nested FVG. Now this is very interesting. Nested FVG means FVG under FVG. This means that FVG is being formed on basically two time frames. say. Nested FVG means that suppose you are on a 4 hour time frame. that suppose you are on a 4 hour time frame. ? Now you are waiting that when an opportunity arises there, we will trade. Isn't it ? It takes time for an opportunity to arise on a four-hour time frame. It takes time to come down. It You are waiting. And while you are waiting, what are you looking at brother? That what are you looking at brother? That another FPG is being formed within this FPG in one hour time frame. We call this nested FPG. So when FVG is formed within a time frame and not within a time frame, then the chances of that trade running increase significantly. The chances of that trade running increase significantly. The how to trade such FVG? How to spot on the chart? Again, what we'll talk about here is when we look at the chart. So what do we do now? Do go straight to the chart. How to spot FVG ? And how to trade in these three FGs, Fresh High Time Frame and Nstsed FG, let us understand them in detail. But before that, please like the video and definitely leave a nice comment. Ok. So now we are on the charts. First of all I will tell you how to identify the fair value gap, how to mark 50%. Then we will how to mark 50%. Then we will ? Look, here you will see it in front of you in your chart, to identify the fair value, first of all you have to look at the big candle. This is a big green candle. What will we do now? This is the first candle. This is the second candle. This is the third candle. So the color of the first not matter if I am talking about bullish FVG. Ok? So what will we do? We will draw a rectangle here from the high of the first candle. Will what will we do? We will draw a rectangle here from the high of the first candle. Will high of the first candle and the low of the third candle. This zone in the middle, this is called FVG. What is this of yours? This is your bullish fair value gap. Ok? It's simple. Now let's talk about bearish. So for bearish, if you check here, you will see it. This is the first candle. This is the second candle. This is the third candle. Meaning I am showing it. This is the first candle. This second big candle should be red. And this third candle. First and third are green. does not make sense. The second one is red. It is big, with a big body. So this is our again a bearish FVG. Bullish we marked here. Now what will we do with this rectangle again ? We will create FVG here on the low of the first candle and the high of the third candle. Now look, this bullish FVG that I have created, a trade will be made in it. It will happen because it talk about the bearish one. We remove the [ __ ]. If you check in the bearish one, this is your If you check in the bearish one, this is your FVG. Now if you notice, as soon as the market went up, the market filled the FVG. The market formed a negative candle. So can go to the lower time frame and trade. As the low of the negative candle breaks. Here, FVG is being formed on the one hour time frame. FG is being formed on a large time frame. For entry, you can trade on 15 minute time frame. Ok? So where will the trade be made here? Like it did FVG Fill. Here, after filling the gap, resistance was mark the low of the negative candle. So, we will mark this negative candle as low. Let's suppose we mark its value here. Where will you trade now So, it will come in 15 minutes time frame. Like its closing will come below the low. Will even trade here. If you check, the market has given you a move of 800,000 points. Very good. So how to spot Bullish FVG, Bearish FVG. I hope you have got that clarity. Right? If I show you another example, pay attention here to the 15 minute time frame. This is your FVG. But why didn't it work? Very small FG Tiny FVG This is to be avoided. So this has to be avoided completely. In the next video, I will tell you which you get clarity on which FVGs you have to avoid completely. So we have talked about bullish and bearish. Isn't it? Now let's talk about Fresh FVG here. So look, this is our FVG, this is our bearish FVG, if you pay attention here, this is your F and this is the third candle, so this FVG which was formed here, the market filled the gap, so before the gap was filled for the first time, this was a fresh FVG. Now the market went up again but it did not work again because it was already used. So it was filling the gap. There was no need to trade for the second time. So this is called fresh FVG. Ok? When I came here for the second time, it was used. Like what is fresh FVG? Now if you notice this is becoming its FVG FVG. Let us remove this. Ok? Let's remove this. Isn't it? If you notice now, this is the high of the first candle and the low of the third candle. This is your fresh FVG, which means it has not been filled yet. So if we trade in this, then trade will be made in it. and an opportunity is being created there again. We have discussed this. Apart from that, let us now talk about higher time frame is simple. Which is being made on a big time frame. It is being made on a four-hour time frame. A deli is also being built. A work very well. Like they come on four R. Let's see if any of our FVGs are being made on Four R ? Letts C. Someone is making FVG on Four R. It can be made here. It is not being made right now. Ok? Check this. This became FVG. This FVG became our own. First candle, second candle, third candle. What did this become? Bullish FVG. Ok? You see this here. Now how will we mark 50% of this ? First, let us take the high of the first and the low of the third for the fair value gap. We have marked this as the fair value gap. Now its 50% simple to mark. We'll take a Fibonacci retracement here. You take Fibonacci retracement because I am used to using it. So it has to go from its low to its high. Where does 50% come in? Draw a horizontal line where 50% occurs. This 50% is coming to you. I will draw a line here. simple way to trade. Let's remove Fibonacci first. This 1 second, yes, first we remove this Fibonacci. Ok? The simple way to trade is that the market will go down. What will either fill the full fair value? Many times it does not fill completely. Where it felt like it was not complete. Isn't it ? If it comes around 50% and tries to go above 50% then we will trade here. The trade entry will be created here. Fair value will keep its SL below the gap. The SL of the number of points is double the target that you got. And on this basis, if you notice, it is not that I am joking. On this basis, today we also took a trade which was taken on our free crypto Telegram channel. If you notice, we were long on BTC at 102150 and if you check, the trade was being formed took the trade, earlier we had shorted, we immediately exited and what I said, we will go long aggressively and we did the trade and I also told you that brother, we are which a video will come which you are watching right now, so whatever I am teaching you, make good money. Yes, if you want to be a part of our community where I share trades analysis, you will find the link to our crypto community in the description box comment section. You can join him. And free of cost. Also, if you want to become a member of our VIP club, you will find its process in the description box comment section. You can also go there, check it out and follow it. It is free now, it will become paid later, so go and avail the free facility. Ok? So If you look at the same thing in a 5 minute time frame, sometimes it will work and sometimes it will not work. If we come to the 5 minute time frame, if you notice, sometimes this works, sometimes this does not work. Now check it here brother. This is your high. This is your take. This is your FVG. Now look here, this work was not done that well. This FVG fill happened but did not work as a support anywhere here. So you should avoid it in small time frames. Ok? Now let's talk about whom here? Now let's talk about nested FVGs. Which is where look here, this is a one hour time frame. What is creating this fair value gap on a one-hour time frame ? It is becoming rainy. This candle one, this candle two, this low of candle three. This becomes your fair value gap. Ok? Now, within this fair value gap, where is this fair value gap of ours? This fair value gap is yours at 25762 in Nifty. And 257, if you notice inside this, another fair value gap will be formed. If I zoom out to the fair value gap here. If you check inside this, another fair value gap will be created which we will create with a different color. This is the first candle. This is the second candle, this is the third candle. If I mark this between the first candle and the third candle, it will be made in red color. Ok? We make it with red color. So if you notice, on the 15 minute time frame, the red one is the farewell gap and on the early time frame, if you notice, this one is the fair farewell gap. So when a farewell gap is formed on a larger time frame and another what do you want to trade here? The trade has to be simple, brother, when the market comes up and a negative candle will be formed around 50% here. Whether it is formed on one hour time frame or because fair value gap is being formed on both the time frames. So here we will take the short side trade. So you just have to learn this thing in detail and master it. If you watch the video once, watch it again, make notes. You will get a lot of clarity. ? What is a nested fair value gap? What is the Higher Time Frame Fair value gap? You must have got clarity on it. Now we are talking about which fair value gap you should not trade and should avoid. But if you are like the video. And if you want to join the Telegram community where I share my trades analysis. The description box is linked in the comment section. You can join from there. Well, I hope you have got complete clarity on how to spot FVG on the chart. How to trade end nested FVG. How to trade higher time frame FVG. How to spot FVG. You must have got all this we have learned which FG to trade. Now it is also very important to know which FVGs should not be traded Ok? First of all you have to avoid FVG with small time frame. As I told you, you have to completely avoid all these FVGs like 5 minutes and 1 minute. Ok? What is the second one? FVG's Inside Choupee Range. Now suppose there is a fair value gap. Ok? But a fair value gap is forming. The market is within a range. If a fair value gap is forming within that range, you must absolutely avoid it. If you want to trade FPG then either on reversal or on breakout or on breakdown, if you trade these FVG then they will work. If the market is moving within a range and So what exactly do you have to do with that? Absolutely have to be avoided. Ok? So when the structure is changing, when the momentum trading when a fair value gap is forming, then definitely it will work well. Ok? Fvgs that are already filled. As I told you, the fair market is again coming close to that fair value gap , then they have to be avoided completely. Do work, sometimes it won't. I would recommend not to trade, it is better. Ok ? A Tiny Week Small FVGs. Now look, where I am talking about FVG, the second candle is the one that has to be large. And the fair value gap should become bigger. If the gap is small then there is no problem. If the gap is big then there is a problem. What do you mean by saying this? Let's say this is your green candle. Ok? say this is your green candle. Ok? Now this is your FVG. What is FVG? It happens through the body. Ok? Now what is the third candle? This is your third candle. If seen, this is also the fair value gap. This marked it high. Marked it low. This is it. But this FVG is very small. Or there are small or tiny FVGs. You should avoid them. You should trade at a larger FVG. Which created big fair value gaps. Isn't it? What's the last thing with him ? FVGs against higher time frame trends. Now let us assume that an FVG is being formed on a larger time frame, for example, on a four-hour time frame. frame, for example, on a four-hour time frame. Which is bullish and at 15 minutes an FVG is being formed which is bearish, so what to do here, you should not trade here because it is confusing, so avoid here because your trade will be bearish but the structure is positive and the structure is also positive, so you have to avoid here, so if you take care of all these things then you will master FVG and as I told you, this video will get 5000 likes and 500 comments. So I am going to explain to you the advanced concepts of Inverse FVG and FVG So I hope you got a lot of clarity from this video. You must have gained a lot of value. definitely tell us in the comment section. And if you did not participate in the demo trading competition of Excel, there I will meet you in the next video. Till then stay safe. Have a nice day. Love you Till then stay safe. Have a nice day. Love you all.