ICT Fair Value Gap & Order Block Strategy Explained – Simple 2-Trigger Entry System

ICT Fair Value Gap & Order Block Strategy

Why This Strategy Exists

If you spend time on TradingView or YouTube, you’ve probably noticed the surge of ICT, Smart Money Concepts (SMC), Fair Value Gaps (FVGs), and Order Blocks.

The problem?
Most explanations are:

  • Overly complex
  • Filled with jargon
  • Hard to execute in real-time
  • Missing clear entry rules

This guide solves that.

You’re about to learn a 2-Trigger Entry System that combines:

  • Institutional imbalance (FVG)
  • High-probability Order Blocks
  • Clear confirmation logic
  • Simple execution rules

This is designed for:

  • New traders who want structure
  • Intermediate traders who want cleaner entries
  • Futures & FX traders who need precision

No indicators required. No guessing. Just price behavior + logic.


What Smart Money Actually Leaves Behind (In Simple Terms)

Before entries, you need to understand why price behaves this way.

The Institutional Reality

Large players (banks, funds, algorithms) cannot enter positions randomly. Their size causes:

  • Imbalances
  • Unfilled orders
  • Repeated revisit zones

These show up on your chart as:

  • Fair Value Gaps (FVGs)
  • Order Blocks (OBs)

Retail traders don’t create these. Institutions do.


Part 1: Fair Value Gaps (FVG) — The Imbalance Signal

What Is an FVG?

A Fair Value Gap is a price imbalance created when price moves too fast, leaving inefficient trading behind.

Classic structure (3 candles):

  • Strong impulse candle
  • Candle before and after do not overlap fully
  • Leaves a visible “gap” in price

Why FVGs Matter

Institutions often:

  • Move price aggressively
  • Leave orders behind
  • Return later to rebalance

This makes FVGs reaction zones, not entry signals.


Part 2: Order Blocks — The Institutional Anchor

What Is an Order Block?

An Order Block is the last opposing candle before a strong move.

Examples:

  • Last bearish candle before strong bullish rally → Bullish OB
  • Last bullish candle before strong bearish drop → Bearish OB

Why Order Blocks Matter

Order Blocks represent:

  • Institutional accumulation or distribution
  • Areas where large orders were executed
  • Zones price often respects on return

Think of them as decision zones, not magic lines.


The Core Strategy: The 2-Trigger Entry System

This system avoids early entries and forces confirmation.

Trigger #1 — Location (The Setup Trigger)

Price must return into confluence:

  • A Fair Value Gap
  • That overlaps or aligns with an Order Block
  • In the direction of the higher-timeframe bias

If location is wrong → No trade


Trigger #2 — Confirmation (The Entry Trigger)

Once price taps the zone, you wait for confirmation, such as:

  • Strong rejection candle
  • Market structure shift on lower timeframe
  • Displacement away from the zone
  • Small internal FVG forming in your direction

This protects you from:

  • Blind limit orders
  • False reactions
  • Liquidity hunts

Step-by-Step Trade Example (Realistic Execution)

Example: Futures or FX (Works on Both)

Timeframes

  • Bias: 1H or 4H
  • Setup: 15m
  • Entry: 5m or 1m

Bullish Scenario

  1. Higher timeframe shows bullish structure
  2. Price rallies → leaves an FVG
  3. Pullback returns into FVG + bullish Order Block
  4. On 5m, price shows rejection + displacement
  5. Entry on candle close confirmation

Risk Management (Most ICT Videos Skip This)

This is where traders actually survive.

Stop Loss Placement

  • Always beyond the Order Block
  • Never inside the FVG
  • Logical invalidation, not emotional distance

Take Profit Logic

Use scaled targets:

  • TP1: Recent high/low
  • TP2: Liquidity pool
  • TP3: Higher timeframe target

Risk-to-Reward sweet spot:

  • Minimum 1:2
  • Optimal 1:3 to 1:5

Common Mistakes (And How to Avoid Them)

❌ Trading every FVG
✔ Only trade FVGs aligned with structure

❌ Entering on first touch
✔ Wait for confirmation (Trigger #2)

❌ Ignoring higher timeframe bias
✔ Bias always comes first

❌ Oversizing positions
✔ Risk stays constant, confidence doesn’t


Where This Strategy Works Best

✔ Futures (ES, NQ, YM, CL)
✔ FX Majors (EURUSD, GBPUSD, USDJPY)
✔ Indices & Liquid Markets

⚠️ Avoid:

  • Low-liquidity sessions
  • Random chop
  • News spikes (unless advanced)

Who This Strategy Is NOT For

This is not for traders who:

  • Want instant entries
  • Hate waiting for confirmation
  • Overtrade every candle
  • Ignore risk rules

This is for traders who want:

  • Clean execution
  • Logic-based entries
  • Institutional alignment
  • Consistency over hype

Final Thoughts: Simple Beats Complicated

ICT, SMC, FVGs, and Order Blocks are powerful — when simplified.

This 2-Trigger System works because:

  • It filters bad trades
  • Forces patience
  • Aligns with institutional behavior
  • Protects capital first

You don’t need more indicators.
You need better structure and discipline.

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