FVG - Powerful application on the real tradesBTCUSDT Perpetual ContractBYBIT:BTCUSDT.PDavid_PerkHey, what’s up, traders? Welcome to another post. Today I’ll show you how to use a FVG - Fair Valu Gap nested inside the Order Block. Yes, you can use FVGs as a standalone level, but this is my specific way of using it inside the order block. It gives me my highest probability trades when I combine it with my CLS setups. Instead of explaining it on hindsight charts with generic guides, I’ll show you exactly how I did it step by step using two recent trades. First the Dollar Index analysis, then the executions on EUR and GBP. Let’s look at the process step by step on this recent Dollar example. 📌 First, we need liquidity to be taken. You can see this big candle around January 27 dipping below liquidity. Price then ranges for about two days, and after that it starts pushing higher. By the end of January, you can see a close back above that bearish candle. Between those candles, there is a gap. The high wick of that doji candle and the low wick of the candle that closed back above the order block create the fair value gap. Price then continues higher for a few days, but the key point is that the fair value gap is sitting inside the Order block. What do we expect next? We expect price to drop back into that gap inside the order block to fill the inefficiency. That is where we look for the next continuation setup, because the order block is confirmed and the market still has room to continue higher. 📌 Now we can see on February 9th that the big Monday candle is dropping right into the order block and inside that fair value gap. It is also dipping below the previous week’s low, which obviously creates the illusion that price is breaking lower and that we are going down. But this fair value gap looks like it is holding the price. We have the CLS range created. This range is created by the market operator, because they are the only ones who can move the market like that with such a strong movement. The logic is simple. If that range breaks lower again, gets rejected, and closes back inside, it will most likely create FOMO in traders and they will start shorting the breakdown. But if we get a close back inside and the fair value gap midpoint holds, we can get a potential reversal and continuation higher, because all of this is happening inside an order block. 📌 We can see that although on Tuesday price broke below the Monday low, it still closed back inside the range. On Wednesday, we got another manipulation below Tuesday’s low. Why? Because Tuesday did not close bullish, it closed bearish. That means we can expect another manipulation lower, and later we will look at this on the lower time frame. 📌 Now focus on the midpoint of that fair value gap. Notice that there was no close below the 50% midpoint line of the fair value gap. Tuesday closed above it. Wednesday opened slightly below with a small gap at the open, but again closed above it. After that, all candles continued to close above. This gives confirmation that the fair value gap inside the order block is holding, that the CLS range is holding, and that we can target the trade toward the top of the CLS range. 📌 This is not just a theory that I’m showing you on hindsight charts. This is something I was actually predicting in advance, as you can see in the post below. You can click on it to see how the trade played out. Now let’s break it down on the lower time frame. Since this is a daily CLS range nested inside an order block and a fair value gap, we need to drop to the one-hour time frame. On the one-hour chart, we focus on the manipulation. We can see the Tuesday low, and then the Wednesday low. Wednesday swept below Tuesday’s low, and then we had a sharp move back inside the range. After that, we got a close back inside and a close above the down-close candle, which confirmed our order block. From that moment, we had confirmation that the change in order flow and the CLS range manipulation had occurred, and we could target the highs of that CLS range. This Trading idea was posted before the fact. Click the picture below to open the initial idea. 👇 🧪 Here you can see how I was thinking about this process. At that moment, we had the Wednesday low, which was basically the manipulation of that CLS range. I was waiting for price to close back inside the range and confirm my order block. 🧩 As you can see here, I wrote and posted on TradingView that once we get a close inside and a retest, I will be selling EUR and GBP. ‼️ Here we can see how the price closed inside and did the retest, and it was basically a signal for me. 💎 So now let’s summarize it. I had a higher time frame order block created on the daily chart of the Dollar Index after liquidity was taken. I was waiting for a pullback into the fair value gap. The key level for me was not the fair value gap by itself, but the fair value gap nested inside the order block. Once the CLS range was created there and manipulated, and price closed back inside, it was a signal for me that the Dollar Index would likely continue higher. If that happens, it gives me a signal to short the highly correlated pairs, which are GBPUSD and EURUSD. You can click on the two posts belo , which were also posted on TradingView. This is not just a hindsight trading guide or explanation. EURUSD short. Click the picture bellow to see the idea 👇GBPUSD SHORT Click the picture bellow to see the idea 👇FVG can be used as the level itself, this is the just one of use and very powerful. b]I promised myself I’d become the person I once needed the most as a beginner. Below are links to a powerful lessons I shared on Tradingview. Hope it can help you avoid years of trial and error I went thru. 📊 Sharpen your trading Strategy ⚙️ 100% Mechanical System - Complete Strategy 🔁 Daily Bias – Continuation 🔄 Daily Bias – Reversal 🧱 Key Level – Order Block 📉 How to Buy Lows and Sell Highs 🎯 Dealing Range – Enter on pullbacks 💧 Liquidity – Basics to understand 🕒 Timeframe Alignments 🚫 Market Narratives – Avoid traps 🐢 Turtle Soup Master – High reward method 🧘 How to stop overcomplicating trading 🕰️ Day Trading Cheat Code – Sessions 🇬🇧 London Session Trading 🔍 SMT Divergence – Secret Smart Money signal 📐 Standard Deviations – Predict future targets 🎣 Stop Hunt Trading 💧Liquidity Sweep Mastery 🔪 Asia Session Setups 📀 Gold Strategy 🧠 Level Up & Mindset 🛕 Monk Mode – Transition from 9–5 to full-time trading ⚠️ Trading Enemies – Habits that destroy success 🔄 Trader’s Routine – Build discipline daily 💪 Get Funded - $20 000 Monthly Plan 🧪 Winning Trading Plan ⭕ Backtesting vs Reality 🛡️ Risk Management 🏦 Risk Management for Prop Trading 📏 Risk in % or Fixed Position Size 🔐 Risk Per Trade – Keep consistency 🧪 Risk Reward vs Win Ratio 💎 Catch High Risk Reward Setups ☯️ Smart Money - Who control Markets Adapt useful, Reject useless and add what is specifically yours. David Perk