Why most traders draw FVGs wrong (and how to actually use them)
Fair Value Gaps are probably the most talked-about ICT concept. And the most misused.
Here's what I see traders get wrong every single day:
1. They mark every FVG on the chart
Not all gaps are created equal. A FVG in premium with no context is noise. A FVG in discount, inside a Breaker Block, during NY AM Kill Zone? That's a setup.
2. They use FVGs as entries instead of zones
An FVG is an area of interest, not a buy button. You still need a trigger — a CISD, an order block rejection, something that confirms the gap is being respected.
3. They ignore the 50% line
The consequent encroachment (CE / 50% line) of a FVG is where price tends to react. If you're not watching the CE, you're entering blind.
4. They don't differentiate SIBI vs BISI
A Sellside Imbalance / Buyside Inefficiency (SIBI) and a Buyside Imbalance / Sellside Inefficiency (BISI) tell you completely different stories about what smart money is doing. If you're not classifying them, you're just drawing boxes.
5. They don't track inversions
When price trades through an FVG and respects it from the other side, that's an inversion — it becomes support (or resistance). Most traders completely miss this and wonder why "the FVG failed."
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I built indicators specifically to handle all of this automatically — classification, CE levels, inversions, the whole thing. I use them every single day to trade NQ and ES.
If you want to see how they work in practice, I post live recaps on X (@whojumpr) and inside the Jump Trading suite here on Whop.
