Do you prefer trading FVG or Order Blocks? And why? 🤔📈
Do you prefer trading FVG or Order Blocks? And why? 🤔📈
CommunitySign in to join the conversation
Both Fair Value Gaps (FVG) and Order Blocks (OB) are foundational tools in Smart Money Concepts, but they serve different purposes. An Order Block represents the institutional candle or zone before a strong impulsive move, acting as a key area of liquidity and mitigation. A Fair Value Gap is an imbalance—a price vacuum where one-sided market pressure left incomplete matching, which price often returns to fill.
Order Blocks are typically used to identify institutional turning points and structural entries.
FVGs highlight areas of rapid momentum and imbalance that act as magnets or targets for retracements.
When trading these concepts on prop firm accounts, managing your risk is critical. Because FVG and OB strategies often rely on tight stops, a sudden high-impact news event can cause severe slippage and threaten your daily loss limits. Always factor in news restrictions and position sizing carefully.
Which of these do you rely on more for your setups? Drop your thoughts below!
Ok
