Fair Value Gap
Detect imbalance zones between candles where price moved too fast.
The Fair Value Gap (FVG) block detects imbalance zones — areas where price moved so aggressively that it left a gap between candle bodies. These gaps represent inefficiency in price delivery, and the market often returns to 'fill' them.
Why It Matters
Fair value gaps reveal where price moved too fast, leaving behind an area where not enough trading took place. Markets tend to revisit these zones to rebalance. This makes FVGs excellent areas to look for entries, especially when price pulls back into them.
How to Use It
- 1Drag the Fair Value Gap block onto your canvas
- 2Set the direction — bullish FVG (gap below price) or bearish FVG (gap above price)
- 3Configure mitigation status and lookback
- 4Connect it to a Wait or Logic block
Settings Explained
Direction — Whether to look for bullish FVGs (gaps left behind during upward moves, acting as support) or bearish FVGs (gaps from downward moves, acting as resistance).
Mitigation Status — Whether the gap has been filled by price returning to it. 'Unmitigated' gaps haven't been revisited. 'Mitigated' gaps have been partially or fully filled. Unmitigated gaps are generally considered higher-probability zones.
Look Back Mode — How far back to search for fair value gaps. Recent gaps are more relevant, but older unfilled gaps can still produce reactions.
Example Use Case
You build a pullback strategy that waits for price to create a bullish FVG during a strong upward move, then enters long when price retraces back into the gap zone. The expectation is that the gap will act as support.
FVGs that form during high-volume sessions (London, New York) tend to be more significant. Combine with session-based filtering for better results.