Fair value gap trading rules you can actually automate

A fair value gap (FVG), sometimes called an imbalance, is a three-candle structure where the wick of candle one does not overlap the wick of candle three, leaving a void. Price often revisits that void later. That observation is not a law of nature, and it is not owned by any educator. An FVG trading bot is useful only after you write the geometry down.

Rules that software can check

• Minimum gap size in points or ATR fractions (ignore tiny noise).
• Timeframe (a 1-minute FVG is not the same trade as a 1-hour FVG).
• Side: trade with a higher-timeframe bias, or both sides if you accept more chops.
• Entry: limit at a percentage of the gap, or wait for a confirmation candle.
• Stop: beyond the gap or beyond the displacement swing.
• Management: partial at 1R, optional runner — or a hard target.

If your journal still says “looks premium” without numbers, do not buy automation yet.

What the bot should refuse to do

It should not stack unlimited orders because a chart has five gaps. Risk per trade and max concurrent FVG positions belong in the FVG trading bot settings for that reason.

Related strategies

FVGs often appear after the same impulse that ORB traders call a breakout. Some traders run both via BigBot but disable one module on the same symbol to avoid double risk.

Reality check

Gaps fill and trend. Gaps fill and reverse. Your edge, if any, is selection and size — not the label “fair value.”