Fair Value Gaps (FVGs): The Institutional Vacuum Zones Fair Value Gaps are one of the most reliable tools used by Smart Money traders. An FVG forms when there’s an aggressive price displacement — usually from institutional volume — and a “gap” is left between candles. Defined by: A large candle (body or wick) with no overlap between the previous candle’s high and the next candle’s low (or vice versa) Creates a zone that price often returns to, seeking balance Why they work: They signal inefficiency in price delivery Smart Money often re-enters positions at the gap on the retrace Strategy: Mark FVGs on 15M, 1H, and 4H Wait for price to return with CHoCH or BOS confluence Enter with tight RR — these zones offer sniper-like precision FVGs are like breadcrumbs left by the banks — if you track them correctly, they often lead to gold.