Introduction
In trading, less is often more. Many beginners chase multiple trades per day, trying to catch every move, only to end up emotionally exhausted and inconsistent. A more refined approach is to take just one high-probability trade per day, applying rigorous discipline, and using a solid edge such as the Fair Value Gap (FVG) strategy. Over time, this can help build consistency, better risk control, and sustainable growth.
In this article, we’ll cover:
- What an FVG (Fair Value Gap) is and why it’s powerful
- How to filter setups so you only take one trade per day
- A step-by-step method for entry, stop, target
- Risk management, psychology, consistency habits
- Pitfalls and how to refine your approach
- References and further reading
Let’s dive in.
What Is a Fair Value Gap (FVG)?
A Fair Value Gap (FVG) is a concept from price action / smart money / institutional trading techniques. It’s an imbalance zone on a price chart left when price moves so aggressively that it leaves a “gap” or area where trades didn’t properly fill all orders. That imbalance often acts as a magnet for price to revisit and fill before continuing.
- On a candlestick chart, an FVG typically forms in a three-candle structure: a large directional candle, flanked by candles whose wicks do not fully overlap. trendspider.com+2Atas.net+2
- The gap is the region between the high of the first candle (or low, depending on direction) and the opposite side of the third candle. fluxcharts.com+2Atas.net+2
- Traders see this as a “void” or inefficiency the market may later return to, offering a potential entry zone. XS+2fluxcharts.com+2
Because FVGs represent imbalances, they are often used as reentry zones: after an impulsive move, price pulls back into the gap, then resumes the original direction.
TrendSpider describes it thus: after identifying an FVG, a trader may wait for the price to revert toward it (the imbalance) and enter in the trend direction once the gap begins to clear. trendspider.com
FTMO also supports FVG as a “powerful price action method” to spot aggressive moves and trade with institutional momentum. FTMO
Here’s a simplified illustration:
| Candle A (impulse) |
| Candle B (overshoot) |
| Candle C |
If the high of A is above the low of C (in case of bullish move) and the wicks don’t overlap, that gap is your FVG zone.
Why One Trade a Day?
Before diving into how, let’s discuss why limiting yourself to one trade per day is beneficial:
- Discipline and Focus
You won’t be chasing noise or impulsive setups. - Quality over Quantity
You sift for the best setup rather than trading mediocre ones. - Psychological Load
Fewer trades = less stress, fewer mistakes, better emotional control. - Better Execution
You have time to plan, measure risk, choose optimal entry, and manage trade well. - Consistency through constraints
A rule like “1 trade only” helps enforce consistency. As Warrior Trading notes, many top traders trade just 1–2 times a day to stay selective. Warrior Trading
Step-by-Step: How to Trade One FVG Trade per Day
Here’s a practical routine and method you can adopt. Adjust timeframes, asset classes, and your personal style:
| Step | Action | Details / Example |
|---|---|---|
| 1. Pre-market / Pre-session analysis | Identify directional bias, check news/events | Know whether the session’s trend is bullish or bearish. Avoid countertrend trades near major news. |
| 2. Scan for FVGs | Use your chart for FVG zones formed earlier (e.g. on higher timeframe) | For example, on 1h or 4h chart, find fair value gaps in the direction of your bias. |
| 3. Mark only top candidates | Limit to 1 or 2 possible FVGs | If more than one qualifies, pick the one with the best confluence (trend, structure, volume) |
| 4. Wait for pullback into FVG | Price must revisit the FVG zone | The pullback should ideally enter smoothly (not violently skip over). |
| 5. Confirmation & entry | Look for a confirmation trigger (e.g. candlestick pattern, momentum, order block) | Example: a bullish engulfing inside FVG in an uptrend. |
| 6. Set stop-loss | Place SL just beyond the extreme of the FVG zone | Usually a few pips beyond the high/low of that gap boundary. |
| 7. Set target / exit plan | Ideally R:R of ≥ 1:1, often 2:1 or more | You can take partial profits or set trailing stops. |
| 8. Manage trade & exit | Track price behavior inside the trade, move SL to breakeven, decide whether to stay in or exit early | Don’t override your rules due to fear or hope. |
| 9. Post-session review | Journal, analyze, track metrics | Note what went right, what didn’t, emotional notes, improvement points. |
Example (Bullish FVG on Forex)
- Trend is up on daily chart.
- On 1h chart, you spot an FVG formed by candles A-B-C.
- Price eventually retraces downward into that FVG box.
- At the lower edge of FVG, you see a bullish engulfing that signals reversal.
- Enter a long position.
- Place stop just a few pips below the FVG bottom wick.
- Target 2:1 (or previous resistance level).
- As price moves, shift stop to breakeven, perhaps exit partially at first target.
- After market close, record results and notes in your journal.
Rules & Filters to Enforce “One Trade Only”
To make this work long term, you need filters and rules so you don’t overtrade or force bad setups.
- Only trade setups that meet all your criteria
If any key element (trend, structure, confirmation) is missing, skip the trade. - Use a daily “stop-trading” rule
Once you take your one trade, stop scanning for the day. - Define session times
Maybe only trade in the first or last 2 hours of a session to capture volatile moves. - Risk cap per day
If your one trade loses, stop for the day (don’t chase losses). - Setup hierarchy / scoring
You can assign scores to setups (trend, volume, confluence). Only take ones above a threshold. - Time filter / news filter
Avoid entering before or during major news. - Avoid low liquidity hours / sideways markets
With these rules, your “1 trade a day” plan becomes enforceable.
Risk Management & Psychology
No strategy works without sound risk control and psychological discipline.
Risk Management
- Position sizing: Don’t risk more than 1–2% (or whatever your own rule is) of capital on your single trade.
Many traders adopt the “1–2% rule.” For Traders+1 - Stop-loss is mandatory: You must have a SL even before entering.
- Reward:Risk: Aim for at least 1:1, preferably 2:1 or more. If the trade doesn’t offer that, skip it.
- No averaging/down: Don’t add to losing trades. That breaks consistency.
- Drawdown control: If you lose multiple days in a row, reduce risk or pause trading.
Psychology & Consistency
- Stick to the rules: Don’t deviate mid-trade because of greed or fear.
- Patience: Wait for the valid setup rather than forcing something.
- Emotional awareness: Record how you feel during trades; over time you’ll see patterns.
- Routine & habit: Build a fixed routine (pre-market, scanning, trade, review).
- Journal everything: Entry, exit, why you took it, emotional state, what you’ll improve.
- Consistent mindset: Accept that losses are part of the process; focus on executing edge, not outcome.
As ForTraders puts it, consistency is built by having a plan, enforcing risk rules, and tracking performance. For Traders
Pitfalls & How to Improve
Some common challenges and how to counter them:
| Pitfall | Problem | Mitigation |
|---|---|---|
| Many potential FVGs but none “perfect” | You may force a trade | Be picky. If none is valid, skip trading that day |
| FVG missed (price jumps past it) | You lose opportunity | Use alerts or limit orders near the zone |
| FVG invalidated | Price breaks through gap | Always enforce stop-loss, discard the zone once broken |
| Overtrading / revenge trading | Emotional stress, losses | Use the “one trade only” rule strictly |
| Lack of confirmation | False entries | Wait for confluence — price structure, momentum, volume |
| Strategy works only sometimes | Overfitting on some markets | Backtest across multiple markets and timeframes, adapt filters |
| FVG zones too large or unoptimized | Entry edge is weak | Refine how you draw FVGs; some traders use only “minor” gaps or partial fills |
You should refine your method iteratively. Over time, you’ll also recognize which rules are essential and which you can adjust.
Putting It All Together — Sample Day Workflow
- Pre-session
- Check macro trend, news events
- Identify directional bias
- Review past FVGs and candidate zones
- During session
- Wait for price to retrace into your FVG zone
- Watch for your confirmation signal
- Enter only when all rules align
- Place stop-loss and target
- Manage trade—move stop to breakeven, partial exits
- After session
- Record trade in journal (entry, exit, outcome, emotion)
- Analyze strengths and mistakes
- Adjust or fine-tune filters
By consistently executing this workflow, you’ll avoid overtrading and build a track record of disciplined, high-quality trades.
Why FVG Works as a Basis for “One Trade a Day”
- FVG is naturally selective: not every impulsive move creates a clean fair value gap.
- The concept aligns with institutional order flow thinking: large players often cause imbalances and gaps, which later get revisited.
- Combining FVG with trend structure and confirmation enhances probability and filters noise.
- Since FVGs are relatively rare compared to random setups, you naturally limit your trade count — ideal for “one trade a day”.
References & Further Reading
- “Price Action 101: Fair Value Gap (FVG)” by Drift Learn — detailed theory of FVGs drift.trade
- “Fair Value Gap Trading Strategy” on TrendSpider — strategy and application of FVGs trendspider.com
- “FVG Trading: what is Fair Value Gap, meaning, strategy” on ATAS Atas.net
- “Boost Your Trading Edge with the Fair Value Gap Strategy” on FTMO FTMO
- “Day Trading Tips: Achieving Consistency in Your Trades” (ForTraders) For Traders
- “Day Trading Consistency” (WarriorTrading) Warrior Trading
- “The Two-Hour-a-Day Trading Plan” (Investopedia) — about restricting trading windows Investopedia
Also, some interesting community perspectives (e.g. Reddit comments on FVG backtests) show that many traders test these strategies and report mixed but often positive results. Reddit
Final Thoughts
- Trading one trade per day forces discipline, sharpens your edge, and reduces emotional mistakes.
- The FVG strategy, if applied with structure, confluence, risk rules, makes a good foundation for that discipline.
- But it’s not magic — you must practice, journal, improve, and always respect your risk rules.
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