Fair Value Gap (FVG)
Updated 2026-09-20
Definition
An area of inefficiency in a three-candle sequence: the first candle's high is below the third's low (bullish) or vice versa.
Why it matters
It's hypothesised that price tends to return to fill it at least partly. It must be filtered by size (for example ≥ 0.3 × ATR) and measured: how many FVGs fill and how fast is told by the data, not opinions.
Practical example
C1 high 1.0960 and C3 low 1.0972: a 12-pip bullish FVG between 1.0960 and 1.0972.
Learn more
Course lesson: Fair Value Gap (imbalance): how it forms, how to measure it, how to handle itRelated entries
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Educational content, not financial advice. Trading involves risk.