What Is A Fair Value Gap ?

Fair Value Gaps(Fvg) occur when a Price leaves a specific level where there’s less trading activity seen and only has a one-directional price movement. Fvg can present new trading opportunities especially when coupled with Supply/Demand.Before diving into the practical use of the Fair Value Gap in trading, it's crucial to have a clear understanding of what it is and how to identify it on your charts. The Fair Value Gap, or FVG, is a widely utilized tool among price action traders to detect market inefficiencies or imbalances. Sometimes you will even see them labeled as inefficiencies by other traders. These imbalances arise when buying or selling pressure is significant, resulting in a large upward or downward move, leaving behind an imbalance in the market.