Order blocks and fair value gaps in plain English
Two zones, one job: telling you where to enter after the sweep. No mysticism — just where the last orders sat and where price moved too fast to be fair.
Order block
The last opposing candle before an impulsive move. For a sell: the last green candle before price dropped hard. That candle's body is where sellers loaded; when price returns to it, the same participants tend to defend it. Entry zone = the body. Stop = beyond the wick. Targets = the liquidity below.
Fair value gap
A three-candle pattern where candle 1's low and candle 3's high do not overlap — price jumped, leaving a gap in the middle candle. Markets dislike imbalance; price frequently returns to fill part of the gap before continuing. In a discount (below the range midpoint) a bullish FVG is a buy zone; in a premium, a bearish FVG is a sell zone.
Which one we use
Order block first, FVG as a refinement. The typical signal: HTF order block defines the area; an M15 FVG inside it defines the precise entry band; the stop sits beyond the order block wick. When only an FVG is present without a block, the risk line will show a wider stop and a lower RR — you will notice those are the trades with TP1 as the main target.
Premium and discount
Draw the range from the last sweep low to the last sweep high. Above 50% is premium, below is discount. We sell in premium and buy in discount. An order block in the wrong half is not a trade, however clean it looks.
Three conditions, always
- Liquidity taken (sweep).
- Structure shifted on the lower timeframe (MSS).
- Entry in an order block or FVG on the correct side of the range.
Published 01 Sep 2026 · Updated 01 Sep 2026