Fair value gaps: do you trade the fill?

A fair value gap is a three-candle imbalance where price jumped so fast the middle candle didn't overlap. ICT-style traders expect price to return and fill the gap; classic traders call it a vacuum.

Fair value gaps: do you trade the fill? — candlestick anatomy diagram
The parts of a candlestick: wick, body, open and close

Do you trade FVGs?

  • how you identify and rank them
  • your entry and invalidation
  • how often the fill actually happens in your data
Fair value gaps: do you trade the fill? — trading sessions clock diagram
The four forex trading sessions across a 24-hour day

The candlestick guide explains the candle mechanics underneath.

Background: How to read candlestick charts

Candlesticks pack four prices into one shape. How to read the body and wicks, what timeframes mean and why single patterns are weaker than they look.

What do the wicks on a candlestick mean?

The wicks show the highest and lowest prices reached during the period. A long wick shows that the price moved there but was pushed back before the candle closed.

Are candlestick patterns reliable?

Not on their own. They are more meaningful at important price levels and on higher timeframes, and they should be combined with a clear plan for risk.

Read the full guide

Comments

Log in to join the discussion. Comments follow the community guidelines.

Log in to comment

Loading comments…