How to Trade the Fair Value Gap on ANY Forex Pair (FVG trading strategy for beginners)
Today, I will show you an easy way to trade Fair Value Gap FVG on Forex.
I will explain a simple entry signal that you can use on any time frame.
Take notes and get a complete step-by-step trading plan and strategy with examples.
FVG & Inefficiency Example
Look at EURJPY pair on a daily time frame.
We see a crazy manipulation and a huge Fair Value Gap.
This Fair Value Gap is the best example of market inefficiency.
After the formation of such a Fair Value Gap, we can expect that at some point the market will fill it.
Wait for This
What newbie traders are doing wrong, they start trading Fair Value Gap fill immediately after it forms. And it is a very big mistake.
Smart money will trap retail traders many times before a gap fill movement starts.
A strong confirmation signal that clearly indicated the start of a gap fill movement was a bullish breakout of this horizontal supply cluster.
Multiple Entries
And as I said, this fair value gap is huge.
And if you miss the initial entry signal, you can continue looking for other opportunities till this gap is completely filled.
There is one powerful pattern that you can look for entries.
As you can see, EURJPY is not moving just straight up.
We see quick and sharp rises and then periods of bullish accumulation.
These accumulations should be your main focus.
Every time, a breakout of a horizontal supply zone confirms the completion of an accumulation.
In our example on EURJPY, such a breakout after an accumulation provided 3 accurate buy signals in a row.
It means that our next strong signal to buy will be a breakout and a candle close above the current horizontal resistance.
A bullish continuation to fill FVG will be anticipated then.
Trading Plan & Strategy
That will be our step-by-step trading plan and strategy to follow.
After a breakout confirmation, we set a buy limit order on a retest of the broken structure.
Stop loss should lie below the low of the accumulation.
Take profit is based on the candle opening of FVG.
Summary
If you spot a huge fair value gap and miss a confirmation signal, keep watching. Oftentimes, another trading opportunity will arise.
Before a fair value gap is fully filled, many entries can be taken.
I hope that this guide will help you in trading fair value gaps on Forex.
