Fair Value Gaps

A **Fair Value Gap (FVG)** occurs when three consecutive candles create a "gap" where price moved so fast that little to no trading occurred.

- **Bullish FVG** — the high of candle 1 is below the low of candle 3 - **Bearish FVG** — the low of candle 1 is above the high of candle 3

Price tends to return to these gaps to "fill" them before continuing in the original direction.