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FXSnipers Quantitative Desk Series

Fair Value Gap + Order Block Continuation Strategy

Forex • EURUSD, GBPUSD, XAUUSD • M15 • SMC
London/New York Overlap
07:00 - 16:00 UTC
Complexity: Advanced
Max Risk 0.5% - 1.0% maximum equity risk per execution.
Target R:R Fixed 1:2.5 minimum R:R target with partial profit taking at structural liquidity pools.
Break-Even Trigger Move Stop Loss to entry once price reaches 1.5R in profit.
Automation Rule-dependent

Pre-Trade Verification Checklist

H4 Trend Check: Confirm H4 is in a verified impulsive trend (HH/HL for buys, LH/LL for sells).
M15 Displacement & FVG: Spot a strong M15 impulse candle breaking local structure and leaving an FVG >= 0.5x ATR.
Order Block Confluence: Identify the last opposing candle before the impulse and measure the 50% FVG/OB overlap.
Limit Order Placement: Set limit order at the 50% FVG level with Stop Loss beyond the OB and minimum 1:2.5 TP.
Time & Expiration Filter: Ensure trade is taken during active session hours and cancel if unfilled after 8 bars.

Entry Execution Criteria

  1. Identify the dominant H4 trend: Higher Highs and Higher Lows for bullish bias, Lower Highs and Lower Lows for bearish bias.
  2. On M15, wait for an impulsive displacement candle that breaks a local minor structure (BOS) and leaves a Fair Value Gap (FVG) where candle 1 high does not touch candle 3 low by at least 0.5x ATR.
  3. Pinpoint the Order Block (OB), defined as the last opposite-color candle immediately preceding the impulsive breakout sequence.
  4. Place a limit order at the 50% equilibrium level of the FVG where it overlaps with the OB zone.

Take-Profit & Target Exit

  • Take Profit 1 set at the next major H1/M15 opposing swing high or low, securing a minimum of 1:2.5 risk-to-reward ratio.
  • Scale out 50% of the position at 1:2 R:R and trail the remainder using the subsequent M15 structural swing points.

Invalidation & Emergency Exit

  • Cancel the pending limit order if price does not fill within 8 bars from the creation of the FVG.
  • Immediate emergency exit or order cancellation if a candle closes fully beyond the extreme of the Order Block invalidation level.
Stop-Loss Positioning

Placed 2 pips beyond the extreme of the Order Block high or low, plus buffer for spread.

Documented & Formatted by FXSnipers Strategy Lab • fxsnipers.com/strategy-lab/fvg-order-block-continuation-strategy
Desk Cheat Sheet Specification v1.0