5 Fair Value Gap Trading Strategies in 2026

5 Best Fair Value Gap Trading Strategies for All Types of Traders

Here are the best proven fair value gap trading strategies for beginner to intermediate traders. You can backtest these strategies and select the FVG trading approach that works best for your needs. Let’s dive in.

1. Only find the high-quality FVGs

To increase your winning rate, you need to identify high-quality Fair Value Gaps, as not all Fair Value Gaps are worth trading.

• Make sure you use multiple timeframes when looking for FVG. First, look for the Fair Value Gap on a higher timeframe, then confirm it on a shorter timeframe.

• Check that the FVGs are formed between candlesticks and not just the wicks, because it's more reliable.

• Not every fair value gap is valid, so you need to check the gap size and its rate of change. The quality fair value gap should keep the price moving in the same direction after it has returned to the gap.

• You need to avoid sideways fair value gaps or lower liquidity markets because it's hard to spot quality fair value gaps. Additionally, it has a higher risk of failure in the market.

2. Combine FVG with the market structure

If you understand the market structure, it will help you identify which fair value gaps are valid and which are not. This will also save you time and reduce confusion when analyzing the price chart.

• You need to look for the FVG gap that appears after a structural break, when the price clearly breaks out and continues the same trend.

• If you see the trend has changed and FVG appears afterward, it will be a quality signal that the price will come back and continue in the same direction.

3. Always wait for the liquidity

• Liquidity indicates when smart money moves the market and often triggers the FVGs zone. Waiting for liquidity before looking for the FVG will increase the spot price of a valid FVG.

• Once the market moves, the price usually returns to the FVG zone, where you can find an entry.

• If you see the liquidity sweeps and a liquidity grab at the fair value gap, this is a strong signal for a trading opportunity.

• Sometimes, the market is triggered by high volatility and traps traders. You also need to be aware of the stop-hunt behavior.

4. Use premium and discount prices

As a trader or investor, you need to understand premium and discount prices. This will help you avoid poor entries and manage risk more efficiently.

 So, what are premium and discount zones?

• A discount zone is the cheaper price zone that you choose to enter to buy.

• A premium zone is a zone that you should sell to make profits.

The FVG shows you how to spot the entry, but the premium and discount zones tell you whether you should get in or wait.

If the price is already in an uptrend and you enter when it's already high, that means you're entering in the wrong zone. We need to sell when prices are already rising to realize higher profits and buy at the lowest price.

5. Spot Advanced Fair Value Gap Entry and Exit

When you combine all strategies together, you will now know how to trade FVG more effectively.

Entry Types You Should Know

1. If the price is in a strong trend and momentum, you can notice multiple big candlesticks in the uptrend or downtrend. It means that you can enter immediately once the price touches the FVG zone.

2. Or wait for multiple confirmations if you are unsure before entering to reduce risk.

3 Steps to execute the fair value gap like expert traders

1. You can enter when the price returns to the FVG gap zone, and place another order once you receive confirmation. This will reduce risk and increase your profits.

2. Avoid trading FVG when market liquidity is low or when there is a major new release, as this can amplify false price movements.

3. Use multiple timeframes for a confirmation. By entering a 1H timeframe, you may need to look at the FVG on the 5M timeframe as well to determine whether a rejection candlestick is already forming or momentum is starting to change.

How Does Fair Value Gap Work in Different Sessions & Assets?

A Fair Value Gap behaves differently in different sessions and assets because different assets have different price behavior, just as different sessions do.

Forex Market

In the major currency pairs, the fair value gap tends to move more cleanly than the major and exotic currency pairs, trading the fair value gap in forex tends to have more false moves.

Indices and the Stock Market

Most high-volume indices and stock markets will exhibit strong trends and large gaps. You will observe more fair value gaps, both in study one and in the critical ones.

Crypto

The crypto market is highly volatile. You can see FVGs both stop hunts and false fills; it's harder to see the entry in the highly volatile market. However, you can wait for extra confirmation to help you spot a better entry.

4 Tips to use FVG in trading

1. You should back-test this trading fair value gap strategy repeatedly to ensure it works in the market and time frames you choose to trade.

2. You need to track your trading performance to learn from your mistakes and increase confidence in the fair value gap trading strategy.

3. Always be patient and wait for extra confirmation when trading with no strong trend or big market momentum.

4. Choose to trade when the London or New York market sessions open, and always back-test before entering the real market. 

How to Manage Risk Using Fair Value Gap?

Using the FVG Trading Strategy 2026 can increase trading profits for you, but to keep your account safe, you need to manage your own risk and know when to use your stop-loss.

• Set your stop-loss around recent swing highs or lows at the timeframes you use to trade. Also, you should never risk more than 1x of your trade. 

• You know when to exit, for example: when the price breaks FVG in the wrong direction or when the price exceeds your resistance or support levels

Best Session for using FVG

You need to consider session performance before choosing the enter.

The London session and the New York session are considered the best sessions to use the fair value gap trading Strategy (Advanced) to trade.

During these sessions, there is high liquidity and strong trading volume, which increases the probability of success in trading.

Can I use AI with the Fair Value Gap??

AI tools are becoming more powerful in the trading game nowadays, but you still need to know how to navigate the valid fair value gap.

Often, the AI guidelines are incorrect or only show the FVGs gap, the zone, and the size of the fair value gap, but false price filling can still occur due to major news or market behavior that day. 

FVG Trading Checklist

To make sure that you will use the Fair Value Gap more effectively, we have a checklist for you to follow before entering a trade:

1. Check the market trend, is it in an uptrend or a downtrend?

2. Look for liquidity or a liquidity sweep to confirm that institutional investors have entered the market.

3. At a higher timeframe, you should look for bias and enter a trade in a lower timeframe.

4. Check if the FVG is in the right zone, whether a discount or a premium zone.

5. Enter and place the stop loss at the previous highs or lows.

Conclusion

The Fair Value Gap helps you identify price imbalances more accurately and reduce trading risk. You can apply all the above mentioned FVG strategies together or combine each one with your own understanding of technical analytics to increase your chances of earning profit.