Fair Value Gap (FVG) is a three-candle price action setup, where a gap is formed between the first and third candles, leaving an imbalance in the price.
This gap can act as a critical zone of support or resistance when the price retraces back to that level.
In today’s market, we observed Nifty taking support precisely around a Fair Value Gap during its pullback, highlighting the significance of this concept.
Fair Value Gap is a Smart Money trading principle, which we recently covered in detail on our YouTube channel as well as in our newly launched Swing Trading Course.
Swing trading course link: https://pivotcall.rpy.club/course/Q5Gtl9zefk
This gap can act as a critical zone of support or resistance when the price retraces back to that level.
In today’s market, we observed Nifty taking support precisely around a Fair Value Gap during its pullback, highlighting the significance of this concept.
Fair Value Gap is a Smart Money trading principle, which we recently covered in detail on our YouTube channel as well as in our newly launched Swing Trading Course.
Swing trading course link: https://pivotcall.rpy.club/course/Q5Gtl9zefk
Whenever an instrument forms a gap-up or gap-down day—meaning it trades entirely outside the previous day's range—very often it creates a powerful support and resistance zone.
The high and low of such a gap day often act as strong reference levels for future price action.
For example, in todays price movement of Nifty and Bank Nifty, both indices faced rejection in the very first candle when they approached the high of May 12th, which was a gap up day. This shows how significant that level is.
Similarly, the low of May 12th is going to become an equally important level.
If Nifty or Bank Nifty retrace back to that zone, it is likely to act as a strong support or can trigger a notable reaction like big breakdowns.
https://pivotcall.rpy.club/courses/oOGLrjLivd
The high and low of such a gap day often act as strong reference levels for future price action.
For example, in todays price movement of Nifty and Bank Nifty, both indices faced rejection in the very first candle when they approached the high of May 12th, which was a gap up day. This shows how significant that level is.
Similarly, the low of May 12th is going to become an equally important level.
If Nifty or Bank Nifty retrace back to that zone, it is likely to act as a strong support or can trigger a notable reaction like big breakdowns.
https://pivotcall.rpy.club/courses/oOGLrjLivd
How to Trade Using the Volume Profile Concept:
Explained how Volume Profile shapes and High Volume Nodes (HVNs) can guide trading decisions with the example of Nifty movement on 12th, 13th, and 14th May:
Nifty Volume Profile Case Study: 12th – 14th May
12th May:
P-Shaped Volume Profile
Indicates a bullish bias with strong short covering.
A clear High Volume Node (HVN) was established near the top range.
Expectation for next day: If price opens above HVN → bullish continuation, if opens below → can be resistance.
13th May:
Nifty opened Below 12th May HVN
The HVN from 12th May acted as a strong resistance.
Price reversed multiple times after testing the HVN.
This day formed a b-Shaped Volume Profile, showing selling pressure and long liquidation(bearish sign)
Explained how Volume Profile shapes and High Volume Nodes (HVNs) can guide trading decisions with the example of Nifty movement on 12th, 13th, and 14th May:
Nifty Volume Profile Case Study: 12th – 14th May
12th May:
P-Shaped Volume Profile
Indicates a bullish bias with strong short covering.
A clear High Volume Node (HVN) was established near the top range.
Expectation for next day: If price opens above HVN → bullish continuation, if opens below → can be resistance.
13th May:
Nifty opened Below 12th May HVN
The HVN from 12th May acted as a strong resistance.
Price reversed multiple times after testing the HVN.
This day formed a b-Shaped Volume Profile, showing selling pressure and long liquidation(bearish sign)
14th May(today):
Nifty opened Above 13th May HVN
Price opened above prior HVN, which initially acted as support.
However, once this HVN level was broken, it led to a sharp fall.
The fall continued until price took support near the previous gap border.
Combining Volume Profile with gap levels/price action, and CPR can offer high probability setups.
Volume profile concept discussed in detail in recently launched swing trading course
https://pivotcall.rpy.club/course/Q5Gtl9zefk
Nifty opened Above 13th May HVN
Price opened above prior HVN, which initially acted as support.
However, once this HVN level was broken, it led to a sharp fall.
The fall continued until price took support near the previous gap border.
Combining Volume Profile with gap levels/price action, and CPR can offer high probability setups.
Volume profile concept discussed in detail in recently launched swing trading course
https://pivotcall.rpy.club/course/Q5Gtl9zefk
As mentioned in my earlier post about the importance of gap borders, just look at the Bank Nifty chart – it's facing stiff resistance every time it reaches either side of the gap borders.
While Nifty has already broken out of its gap borders, Bank Nifty is still trading within those borders, showing how powerful these levels can be as support and resistance.
📊 Gap borders can act like invisible walls on the chart – but once they are broken, especially with volume, the breakout can be very wild, just like what we saw on the Nifty chart today!
📌 Key takeaway: Watch those gap zones closely. They are not just price voids – they often define the battlefield between bulls and bears!
https://pivotcall.com/courses/
While Nifty has already broken out of its gap borders, Bank Nifty is still trading within those borders, showing how powerful these levels can be as support and resistance.
📊 Gap borders can act like invisible walls on the chart – but once they are broken, especially with volume, the breakout can be very wild, just like what we saw on the Nifty chart today!
📌 Key takeaway: Watch those gap zones closely. They are not just price voids – they often define the battlefield between bulls and bears!
https://pivotcall.com/courses/
💡 Power of Volume Profile Trading 💡
One of the very effective techniques in trading is using the Volume Profile to identify High Volume Nodes (HVNs).
Simply mark the HVNs from the previous day and carry them forward to the next trading session.
These levels often act as strong support or resistance zones. 📈🔁
Why? Because HVNs represent areas where big players—institutions or smart money—have taken significant positions, either by accumulating (buying) or distributing (selling) large quantities. 🏦📊
When price revisits these zones, these big players often defend their positions aggressively, making these levels critical levels to watch. 🚧💪
This concept is a key part of the Smart Money Trading Strategy we teach in our Swing Trading Course🎯📚
https://pivotcall.com/courses/
One of the very effective techniques in trading is using the Volume Profile to identify High Volume Nodes (HVNs).
Simply mark the HVNs from the previous day and carry them forward to the next trading session.
These levels often act as strong support or resistance zones. 📈🔁
Why? Because HVNs represent areas where big players—institutions or smart money—have taken significant positions, either by accumulating (buying) or distributing (selling) large quantities. 🏦📊
When price revisits these zones, these big players often defend their positions aggressively, making these levels critical levels to watch. 🚧💪
This concept is a key part of the Smart Money Trading Strategy we teach in our Swing Trading Course🎯📚
https://pivotcall.com/courses/
Volume Profile Analysis – Bank Nifty (19th & 20th May)
16th May – "D" Shaped Volume Profile:
On this day, Bank Nifty formed a "D" shaped volume profile, which typically indicates a consolidated market.
(Strategy- Break of "D" shaped volume profile range on next day is the best breakout entry)
19th May – "b" Shaped Volume Profile
High volume node at the lower end of 19th May in Bank nifty Indicating strong short positions were being built by big players.
(Strategy- High volume node is the strong level for next day, if it breaks then it is bearish and if it holds then it is bullish)
20th May – Break of high volume node (Bearish Confirmation):
On 20th May, the very first candle of the day broke the high volume node of the 19th May profile, indicating a bearish sentiment for the day
https://pivotcall.rpy.club/course/Q5Gtl9zefk
16th May – "D" Shaped Volume Profile:
On this day, Bank Nifty formed a "D" shaped volume profile, which typically indicates a consolidated market.
(Strategy- Break of "D" shaped volume profile range on next day is the best breakout entry)
19th May – "b" Shaped Volume Profile
High volume node at the lower end of 19th May in Bank nifty Indicating strong short positions were being built by big players.
(Strategy- High volume node is the strong level for next day, if it breaks then it is bearish and if it holds then it is bullish)
20th May – Break of high volume node (Bearish Confirmation):
On 20th May, the very first candle of the day broke the high volume node of the 19th May profile, indicating a bearish sentiment for the day
https://pivotcall.rpy.club/course/Q5Gtl9zefk
Volume profile analysis in Nifty(smart money trading concept)
On 20th May, Nifty formed a b-shaped volume profile, with the highest volume node at the lower end, indicating short build-up by smart money.
On 21st May, Nifty opened above this high-volume node, which then acted as a strong support throughout the session.
This day Nifty formed a D-shaped volume profile, reflecting consolidation.
On next day a breakout from either end of this D-shaped range was expected to provide a high-probability trade setup.
On 22nd May(today), the first candle broke below the previous day's(21st May) D-range, triggering a sharp down move as anticipated.
https://pivotcall.com/courses/
On 20th May, Nifty formed a b-shaped volume profile, with the highest volume node at the lower end, indicating short build-up by smart money.
On 21st May, Nifty opened above this high-volume node, which then acted as a strong support throughout the session.
This day Nifty formed a D-shaped volume profile, reflecting consolidation.
On next day a breakout from either end of this D-shaped range was expected to provide a high-probability trade setup.
On 22nd May(today), the first candle broke below the previous day's(21st May) D-range, triggering a sharp down move as anticipated.
https://pivotcall.com/courses/
Today's price action in Nifty is a clear example of why the previous day's high volume node should never be overlooked.
On 22nd May(yesterday), Nifty formed a classic "D" shaped profile, indicating a day of consolidation.
The high volume node, which was situated at the center of this profile, often acts as a strong support or resistance level for the next day.
On 23rd May(today), the very first candle in Nifty respected this level, taking support and triggering a strong upward move.
This zone was further strengthened by the presence of CPR support at same level, making it a high-probability entry setup.
https://pivotcall.com/courses/
On 22nd May(yesterday), Nifty formed a classic "D" shaped profile, indicating a day of consolidation.
The high volume node, which was situated at the center of this profile, often acts as a strong support or resistance level for the next day.
On 23rd May(today), the very first candle in Nifty respected this level, taking support and triggering a strong upward move.
This zone was further strengthened by the presence of CPR support at same level, making it a high-probability entry setup.
https://pivotcall.com/courses/
Bank Nifty Volume Profile Analysis – 26th May
On the last trading day (23rd May, Friday), Bank Nifty formed a classic "P-shaped" volume profile, typically indicative of short covering and strong buying interest.
The highest volume node — was established near the top of the profile, further reinforcing the strength of the buyers.
Today, on 26th May, Bank Nifty opened with a gap-up, signalling continued bullish sentiment.
During the initial retracement, Bank Nifty precisely took support at the previous session’s highest volume node, confirming it as a strong demand zone.
From there, it witnessed a sharp bounce, validating the volume node’s role as a reliable support level.
https://pivotcall.com/courses/
On the last trading day (23rd May, Friday), Bank Nifty formed a classic "P-shaped" volume profile, typically indicative of short covering and strong buying interest.
The highest volume node — was established near the top of the profile, further reinforcing the strength of the buyers.
Today, on 26th May, Bank Nifty opened with a gap-up, signalling continued bullish sentiment.
During the initial retracement, Bank Nifty precisely took support at the previous session’s highest volume node, confirming it as a strong demand zone.
From there, it witnessed a sharp bounce, validating the volume node’s role as a reliable support level.
https://pivotcall.com/courses/
Volume Profile Analysis (May 26th-28th)
On May 26th, Nifty formed a "D"-shaped volume profile, with a significant volume node at the center.
This level acted as a key resistance and was reversed from the same point on May 27th.
On May 27th, Nifty again displayed a "D" profile, and today (May 28th), it reached resistance at the same level and reversed.
Volume profile on price action charts provides insight into where major players have bought or sold large positions, highlighting critical support and resistance levels based on trading activity.
https://pivotcall.rpy.club/course/Q5Gtl9zefk
On May 26th, Nifty formed a "D"-shaped volume profile, with a significant volume node at the center.
This level acted as a key resistance and was reversed from the same point on May 27th.
On May 27th, Nifty again displayed a "D" profile, and today (May 28th), it reached resistance at the same level and reversed.
Volume profile on price action charts provides insight into where major players have bought or sold large positions, highlighting critical support and resistance levels based on trading activity.
https://pivotcall.rpy.club/course/Q5Gtl9zefk
📊 Volume Profile: The Smart Money's Footprint
🗓 Nifty Chart Analysis: 3rd to 5th June
🔸 3rd June:
The highest volume node (HVN) for the day was established near the bottom, making "b" shaped profile, indicating strong sellers and potential distribution at the lower levels.
🔸 4th June:
Price opened above that high volume node level and retraced precisely to the HVN of 3rd June and bounced, which now acted as a support zone.
This validates the concept of price memory — levels where institutions were active tend to get defended.
Later in the session on 4th June, a new HVN developed at a higher price range making "p" shaped volume profile, signalling a shift from sellers to strong buyers.
🔸 5th June:
Once again, price pulled back to the HVN of 4th June and rebounded sharply from that support.
📌 Same level, same reaction — a clear sign of volume profile acting as support - institutional support and strong demand.
https://pivotcall.rpy.club/course/Q5Gtl9zefk
🗓 Nifty Chart Analysis: 3rd to 5th June
🔸 3rd June:
The highest volume node (HVN) for the day was established near the bottom, making "b" shaped profile, indicating strong sellers and potential distribution at the lower levels.
🔸 4th June:
Price opened above that high volume node level and retraced precisely to the HVN of 3rd June and bounced, which now acted as a support zone.
This validates the concept of price memory — levels where institutions were active tend to get defended.
Later in the session on 4th June, a new HVN developed at a higher price range making "p" shaped volume profile, signalling a shift from sellers to strong buyers.
🔸 5th June:
Once again, price pulled back to the HVN of 4th June and rebounded sharply from that support.
📌 Same level, same reaction — a clear sign of volume profile acting as support - institutional support and strong demand.
https://pivotcall.rpy.club/course/Q5Gtl9zefk