FVGFair Value Gap
A 3-candle imbalance where the wicks of candle 1 and 3 don't overlap, leaving an unmitigated gap. Price often returns to fill it.
A Fair Value Gap (FVG) is a 3-candle pattern where the wicks of the first and third candles don't overlap, leaving a price gap inside the middle candle. The gap represents 'unfair' pricing — buyers and sellers didn't have a chance to interact in that range, so the market often returns to fill it later.
FVGs are gold for entry timing. Bullish FVGs (gaps left during impulsive up-moves) become support; bearish FVGs become resistance. The highest-probability play is an FVG near an Order Block — when price returns to mitigate the OB AND fill the FVG, you have institutional-grade confluence.
Strategies that use FVG
Browse more terms
Apply FVG on a real chart
Drop a chart, and TradeLens AI shows you where FVG appears — in seconds.
Try it free