// TRADING TERMINOLOGY
What is Fair Value Gap (FVG)?
An imbalance in price action where a candle moves so quickly that it leaves a "gap" in the price delivery.
In-Depth Explanation
FVGs are identified on a three-candle sequence where the wicks of the first and third candles do not overlap. Markets often return to "fill" these gaps to achieve price equilibrium.
Practical Example
"The price gapped down so fast during the news that it left a 30-pip fair value gap that was filled later in the session."
Related Terms
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