I keep seeing people talk about Fair Value Gaps lately. I trade forex for a few years, mostly price action. I understand support and resistance, trendlines, simple stuff. But FVG feels confusing. Is it just another name for imbalance, or is there something practical behind it? I don’t want more theory. I want to know if this actually helps with entries and exits in real market conditions.
I had the same doubts at first. What helped me was understanding that FVG is very specific, not a wide zone. It’s about speed. Price moves too fast and skips levels. That skipped area often matters later. This article explains it clearly with examples and rules, not hype: https://forextester.com/blog/fair-value-gap/
After reading it, I started marking gaps on lower timeframes and noticed how often price comes back there. It didn’t replace my system, but it made entries cleaner and stops tighter.
I use it more as a filter. If price reacts inside a gap and structure agrees, I pay attention. If not, I ignore it. Alone it’s weak, but with context it makes sense.