Fair value gap (FVG)

A fair value gap is a three-candle price imbalance left by a fast move, where the first and third candles do not overlap, that markets often return to fill.

Because price moved too quickly to trade fairly through that range, it tends to be revisited and 'rebalanced' later. FVGs are used as entry zones and targets in ICT/SMC trading, especially with order-block confluence. Algovex detects and tracks FVGs across bars.