OB+FVG strategy

OB + FVG Forex Strategy (Order Block + Fair Value Gap)

The OB+FVG Forex Strategy is a smart money trading approach that combines two key concepts from institutional trading: Order Blocks (OB) and Fair Value Gaps (FVG). This strategy aims to identify high-probability trade entries by aligning market structure with institutional price imbalances.

🔷 1. Order Blocks (OB)

An Order Block is a price range where institutional traders (smart money) have placed significant buy or sell orders, typically leading to a strong move in price. They often appear before major market reversals or continuations and act as key support/resistance zones.

Bullish OB: Last down candle before an impulsive move up.

Bearish OB: Last up candle before an impulsive move down.

🔷 2. Fair Value Gaps (FVG)

A Fair Value Gap is a three-candle pattern where the middle candle creates a price imbalance (gap) between the high of the first candle and the low of the third (in an up move), or vice versa (in a down move). These gaps represent inefficiencies in the market where price may return to "rebalance."