If you are blindly buying every Fair Value Gap you see, you are doing it wrong. The secret to a high win rate with Smart Money Concepts is knowing where the pattern formed relative to the overall dealing range. This is the concept of Premium and Discount.
To apply this concept, you first draw a Fibonacci retracement tool from the most recent prominent swing low to the most recent prominent swing high. The 50% mark of this tool represents "equilibrium"—the exact middle of the range.
Any price above the 50% equilibrium mark is considered "Premium." In the real world, institutions do not buy assets when they are trading at a premium. They sell them. If you see a bullish Order Block form in the premium zone, it is low probability. You should only be looking for short (sell) setups in premium pricing.
Any price below the 50% equilibrium mark is considered "Discount." This is where institutions accumulate long positions because the asset is "cheap." The highest probability long entries occur when price dips deep into the discount zone (below the 50% line, ideally tapping the 62% or 79% levels) and taps a bullish Fair Value Gap.
To know which direction to trade the dealing range, you need context. Read our guide on ICT Daily Bias: How to Predict Market Direction.
HSKY Suite maps the institutional structure for you, highlighting the high-probability HTF Imbalances so you always know when price has reached a deep discount.
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