Collectible card · Rare
Fair Value Gap (FVG)
A three-candle pattern where the middle candle moves so fast that the wicks of candles 1 and 3 do not overlap, leaving a gap of untraded prices.
Why it works
The gap marks an imbalance: one side was so aggressive that the other side could not fill orders. Price often returns to "rebalance" it before continuing.
How to use it
In an uptrend, a bullish FVG below price is a potential buy zone. Enter inside the gap, stop below it (or below the swing), target the next liquidity above.
The typical mistake
Trading every gap. FVGs against the 4H trend, or already filled, fail far more often.
FAQ
What is FVG in trading?
A three-candle pattern where the middle candle moves so fast that the wicks of candles 1 and 3 do not overlap, leaving a gap of untraded prices.
How do you trade FVG?
In an uptrend, a bullish FVG below price is a potential buy zone. Enter inside the gap, stop below it (or below the swing), target the next liquidity above.