Weekly FVG: How to Trade Fair Value Gaps with Precision

If you’ve been studying price action or smart money concepts, you’ve likely heard of Fair Value Gaps (FVGs). But did you know that weekly FVGs can offer some of the most powerful and consistent high-probability setups in trading?

In this post, we’ll break down everything you need to know. First, we’ll explore what a fair value gap is, explained in simple terms. Then, we’ll show you how to identify FVGs on your chart and how FVGs work in real market conditions. Additionally, you’ll learn a complete fair value gap trading strategy using the weekly timeframe along with examples of bullish and bearish FVGs. Finally, we’ll explain how to confirm your entries using order flow and price structure.

 Fair Value Gap Explained (What Is an FVG?) / Weekly FVG

A Fair Value Gap (FVG) is an imbalance in price—specifically a gap between the high of one candle and the low of another, where no trades occurred in between. In simple terms, it represents a price area where the market moved too fast and didn’t offer fair trading opportunities to both buyers and sellers.

Institutions often come back to these gaps later to re-balance orders—making them prime entry zones. As a result, FVGs are frequently used in ICT trading, smart money strategies, and price action frameworks.

How to Identify FVG on Your Chart

Here’s a quick and effective way to spot a fair value gap:

1. Look for three consecutive candles

2. A gap exists when the low of the third candle is above the high of the first (in bullish FVGs)

3. For bearish FVGs, the high of the third candle is below the low of the first

This “gap” between candle 1 and 3 is where price moved too quickly and created an imbalance. You can draw the gap using rectangles or rely on FVG indicators available on platforms like TradingView, MT4, or MT5.

Why Weekly FVGs Are Powerful / Weekly FVG

The weekly timeframe is a goldmine for finding strong FVGs. Here’s why:

• Institutions operate on higher timeframes

• Weekly gaps often hold price memory for weeks or even months

• They offer swing trading opportunities with excellent risk-reward potential

• They’re easier to manage and less noisy than lower timeframes

Therefore, once a weekly fair value gap forms, you can wait for price to revisit that zone and use lower timeframes (like H4 or M15) to time your entry.

How FVG Works in the Market

When an FVG forms, it shows that one side—either buyers or sellers—was in complete control, and price moved with little resistance. Eventually, price often returns to that gap to “rebalance.” This is where smart traders find opportunity.

For instance:

• Bullish FVG: Price drops into the gap → buyers step in → continuation upward

• Bearish FVG: Price rises into the gap → sellers take over → price drops again

This logic forms the basis of many reliable FVG trading strategies.

 Bullish Fair Value Gap vs Bearish Fair Value Gap

Understanding the difference between a bullish and bearish FVG is essential:

Look for these zones especially after liquidity grabs or break of structure events. They provide clarity and confluence when building a trading bias.

FVG Stock Trading Strategy

Yes, FVGs also apply to stocks—not just Forex or crypto. Many tech and growth stocks form clean FVGs on the daily and weekly charts, especially during earnings runs or volatile periods.

When trading FVGs in stocks:

• Use the weekly chart to find major gaps

• Use the daily or 4H chart to refine your entry

• Confirm setups using volume, market structure, or order flow

This approach helps you scale into strong moves while managing your risk more effectively.

 FVG Trading Setup (Step-by-Step) / Weekly FVG

Here’s a simple and practical fair value gap trading setup to test:

1. Switch to the weekly chart

2. Look for a clean bullish or bearish FVG

3. Wait for price to return to the zone

4. Drop to H4 or M15 and look for:

   • MSS (market structure shift)

   • Imbalance confirmation

   • Volume support

5. Place your trade with a stop just beyond the gap

6. Target the next key level, FVG, or liquidity zone

In addition, this setup can be refined further by using volume and flow confirmation tools.

FVG Indicator: Should You Use One?

You can definitely use an FVG indicator to save time. These tools automatically highlight gaps and speed up your workflow. However, always validate the zone manually.

Some of the best FVG indicators are available for:

• TradingView

• MT4/MT5

• NinjaTrader and ThinkorSwim (custom-coded)

Even though these tools are helpful, understanding the logic behind the gap is what gives you an edge.

Learn to Trade Fair Value Gaps Like a Pro / Weekly FVG

If you’re serious about trading fair value gaps with consistency and precision, it’s time to build a deeper foundation.

Supply & Demand Trading Course

Learn to integrate FVGs with institutional supply/demand zones, premium/discount logic, and risk-managed entries.

Orderflow Trading Masterclass

Use footprint charts, delta volume, and order flow logic to confirm entries at weekly FVGs with greater precision.

 Broker Tip for Trading FVGs

To trade FVGs with clean execution and low spreads—especially around volatile entries—you need a reliable broker.

👉 We recommend IC Markets

• Ultra-low spreads

• Ideal for Forex, indices, and stocks

• MT4, MT5, and cTrader supported

• Fast order execution for intraday and swing traders

 Final Thoughts: Weekly Fair Value Gaps Can Be Game-Changers

If you’re looking for high-quality, high-reward setups, weekly FVGs offer structure, logic, and clarity. They’re a roadmap to where institutions moved—and where they’ll likely return.

✅ Learn to identify them
✅ Combine with structure and timing
✅ Confirm with volume and flow
✅ Trade them with confidence