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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.

1.284111.293221.302331.311441.32055Bearish FVGDecision pointWhat happened next →
Real example: EUR/USD, 15-minute chart, 2010-08-11. Zones detected automatically with Candlemind's rules, using only the candles before the decision point.

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.