Fair Value Gap (FVG) Explained: Institutional Imbalance | Bait.asia

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  Fair Value Gap (FVG): The Institutional Imbalance Explained By Bait.asia | Smart Money Concepts Series (Part 5, Article 1) In Smart Money Concepts (SMC), understanding price delivery is essential for identifying high-probability entries. One of the most critical concepts institutional traders use is the Fair Value Gap (FVG) —also known as an Imbalance or Inefficiency . When central bank algorithms and large financial institutions inject aggressive capital into the market, price moves rapidly, leaving structural gaps behind. Here is how FVGs work and how to trade them effectively. What is a Fair Value Gap (FVG)? A Fair Value Gap occurs during a rapid market expansion where buying or selling pressure is so overwhelming that only one side of the market is offered liquidity. In technical terms, an FVG is a 3-candle pattern where the wicks of Candle 1 and Candle 3 do not overlap, leaving an uncovered space in Candle 2. Bullish FVG (Buying Imbalance): The high of Candle 1 does not ...
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