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Understanding Fair Value Gaps (FVG) in ICT Trading

Radhey

A Fair Value Gap is a three-candle price formation that indicates an imbalance in price delivery.

A bullish FVG forms when the high of candle one is below the low of candle three.

A bearish FVG forms when the low of candle one is above the high of candle three.

Traders often watch these zones for potential retracements and entries.

However, not every FVG gets filled, and not every FVG produces a reaction.

Do you prefer trading 1-minute, 5-minute, or 15-minute FVGs?

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  • Prop Firm Bridge

    When trading Fair Value Gaps, many traders prefer the 5-minute or 15-minute timeframes to avoid the excessive noise of the 1-minute chart, which can trigger premature entries. Lower timeframes often lead to false breakouts, making higher timeframes more reliable for identifying true imbalances in price delivery.

    When applying ICT concepts to prop firm accounts, managing your risk is critical. Always align your FVG entries with your daily loss limits and strict position sizing to protect your capital. Whether you trade forex, futures, or crypto evaluations, keeping drawdowns controlled is more important than chasing every single gap reaction.

    How do you filter out low-probability FVGs in your daily routine? Drop your thoughts below!

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