Fair Value Gaps: A Practical Visual Trading Guide to Finding Imbalances, Reading Price Reactions, Timing Entries, and Managing Risk

Faramarz Kowsari begins with the exact three-candle geometry of a Fair Value Gap and then moves beyond the rectangle itself. Readers learn how to distinguish bullish and bearish FVGs, mark their boundaries correctly, recognize fresh, touched, mitigated, filled, and invalidated gaps, and evaluate whether a visible imbalance is actually useful for a trading decision.

The book explores displacement, gap size, stacked and overlapping FVGs, market structure, liquidity sweeps, higher-timeframe gaps, premium and discount, inverse Fair Value Gaps, consequent encroachment, and multiple entry models.

Special attention is given to what traders often overlook: not every valid Fair Value Gap is tradable. Context, location, structure, execution costs, stop placement, available targets, risk, and failure conditions all matter.

Readers also work through complete trade examples, ten trades that should be avoided, backtesting methodology, a personal FVG playbook, identification checklists, quality scorecards, position-sizing worksheets, journal fields, and visual reference material.

Rather than presenting Fair Value Gaps as guaranteed magnets or reversal zones, this book treats them as observable price structures that must be tested within context. The rectangle is easy to draw. The real skill is deciding whether it deserves your risk.