GLOSSARY · MARKET STRUCTURE
What is Fair Value Gap (FVG)?
A fair value gap is a three-candle imbalance where price moved so fast it left a gap between candle wicks.
If candle 1's high is below candle 3's low in a rally, the space between them is a bullish FVG. Price often returns to "fill" part of that gap before continuing.
EXAMPLE
ES candle 1 high 5,030, candle 3 low 5,034 after a sharp rally: the 5,030–5,034 zone is a fair value gap traders watch on the pullback.
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