The ICT FVG PATTERN

The Fair Value Gap

1. FVG pattern:
a. The institutional order flow pattern is based on a 3-candle formation.
b. The optimal formation of the ICT FVG will be found after a run into Buy-side/Sell-Side
Liquidity.
c. Typically found just above/below a single Price High/Low or Multiple Price Highs/Lows in
a relative basis.

OR

2. There’s an algorithm that delivers efficient market delivery.

a. When the algo flips from bullish to bearish or vice versa; and a run in the opposite way
takes place; the algo must come back and fill those inefficiencies.

3. Optimal formations occur after a run after buyside/sell-side liquidity.

a. The model only works after price runs over an old high/low
i. Old highs/lows are pools of liquidity
ii. Location where retails money is resting
 The Market Structure Shift

1. The market will see price delivery a rally above an old high/low then quickly shift lower.
2. Significance is placed on the term “quick” and with displacement lower. Not a small candle
moves lower or a wick only, after a candle close.

OR

3. A displacement candle must be strong and close below the short-term low.
4. The FVG will form in between the displacement high and low
5. The movement must be beefy and energetic.

This pattern forms every single trading day

The Set Up

1. A valid set up begins during very specific times of day.

2. Set up 1:
a. 8am to 11 am
3. Set up 2
a. 1pm to 4pm
4. Wait for price to go after a pool of liquidity such as: double tops/bottoms; buy-stops;
sell-stops; triple tops/bottoms; daily high/lows; or short term high/lows.
5. Once price takes out the liquidity you wait for the algo to show its hand
6. When you see a beefy/energetic displacement candle that breaks short term market
structure; you wait for a fair value gap to form.
7. When the fvg forms, you look to enter in the trade when price comes back to mitigate
the fvg.
a. The entry occurs when price comes back to rebalance the inefficiency
b. Your entry can be a limit order or a market order

8. Your stop loss will be above the swing high/lows of the set up.

IF THESE EXACT STEPS DO NOT HAPPEN, YOU DO NOT HAVE A SET UP!!!!!!!