FVG without the magic

3 min · 6 steps

1. Step 1 · Three candles

   FVG: a gap between the first and third candle.

   BTC 1h, Mar 4, 2026: the 07:00 candle's high sits at 69 668, the 09:00 candle's low at 70 724. No overlap: there's a $1 056 gap between them.

   70 724low 09:00−69 668high 07:00=$1 056gap

2. Step 2 · Impulse

   The impulse ran through the zone one way.

   The 08:00 candle ran through 69 668–70 724 in one move: there was barely any two-sided trading there. That's how an FVG, or imbalance, forms.

   FVGretrace

3. Step 3 · Retrace

   Price often comes back into the FVG.

   At 12:00 price retraced to 70 588 and closed above at 71 340. At 14:00, a new high 72 633 above the impulse's 71 893.

   FVG

   69 668–70 724

   retrace

   70 588

   new high

   72 633

   FVGretrace

4. Step 4 · Counterexample

   An FVG isn't support and it isn't a magnet.

   BTC 1h, Aug 11, 2025: an FVG at 119 999–121 559, a retrace, and at 12:00 a close under the zone, at 119 644. Price then dropped to 118 566.

   Price closed and held below the zone, so the zone is broken. Expecting a bounce off it after that is hope, not a plan.

   FVGclose belowmove

5. Step 5 · Find it yourself

   Where's the FVG?

   BTC 1h, Feb 20, 2024. Tap a level inside the FVG.

   Practice on the chart

   This is a Find it yourself task: tap a candle or a level, and the lesson tells you right away if you got it.

   Create an accountThis step unlocks after sign-up. Your progress is saved.

6. Step 6 · Recap

   You mark an FVG by three candles.

   1

   first candle

   ›

   2

   impulse

   ›

   3

   third candle

   ›

   4

   gap

   recap

   An FVG is a gap between the first candle's high and the third candle's low. A zone where we expect a reaction, not a signal.

   There's no rule for your Pact here: which FVG to trade is the next lesson, the A/B/C filter.