---
title: 'How to Use Fair Value Gaps Differently for Better Entries'
source: 'https://youtube.com/watch?v=_RMyXrb7hDo'
video_id: '_RMyXrb7hDo'
date: 2026-08-19
duration_sec: 60
channel: 'TradingLab'
---

# How to Use Fair Value Gaps Differently for Better Entries

> Source: [How to Use Fair Value Gaps Differently for Better Entries](https://youtube.com/watch?v=_RMyXrb7hDo)

## Summary

This video presents an alternative trading strategy for using fair value gaps (FVGs) in a bullish context. Instead of the conventional approach of shorting at a bearish FVG, the creator advocates for a higher-timeframe FVG break as a strong bullish signal, followed by a long entry on a lower timeframe.

### Key Points

- **Conventional FVG Use** [00:00] — The typical method involves identifying a bearish FVG, waiting for price to retrace to it, and then shorting, expecting a move lower.
- **Higher Timeframe FVG Break** [00:15] — The strategy shifts to a higher timeframe (e.g., 4-hour) to find a bearish FVG. Instead of expecting rejection, the trader looks for price to break through this gap to the upside, which is interpreted as an extremely bullish sign.
- **Liquidity Grab Confluence** [00:29] — A liquidity grab to the downside in the same area adds confluence to the bullish signal, strengthening the case for a long trade.
- **Lower Timeframe Entry** [00:45] — After the higher timeframe gap is broken, the trader drops to a lower timeframe to find a bullish FVG for entry, setting a stop loss below the low and a take profit at the high.

### Conclusion

The video offers a contrarian approach to FVG trading, using a higher-timeframe break as a powerful bullish signal and then reverting to standard FVG entry techniques on a lower timeframe for a high-probability long trade.

## Transcript

Now, if I guessed right, you probably use fair value gaps like this, where you have a normal bearish fair value gap, wait for price to come to this gap, then short it, expecting it to head lower. But what if I told you there's a completely different way we can use these? First step, go to
a higher time frame. I like to use the four hour time frame for this. Next, find a higher time frame fair value gap. Here we have a bearish fair value gap. Instead of looking for price to reject in this area, we want price to break this gap. As this is showing, price is so bullish that it
completely rejected this bearish gap, which is an insanely bullish sign. If you also look closely, we also have a liquidity grab to the downside, which is another great confluence. Once price completely breaks this gap to the upside, we can start looking for our entry. Go to a smaller
time frame, then start looking for a place to enter. This time, we can use our gaps like normal. So there's a bullish fair value gap here. Wait for price to come down to it. Set our stop loss below the low, set or take profit at the high, you got an easy winning trade.