Fair Value Gap highlights imbalances where price moved too aggressively to trade smoothly through the area.
Fair Value Gap highlights imbalances where price moved too aggressively to trade smoothly through the area.
A fair value gap marks an imbalance left by displacement. It matters most when price returns to the zone and reacts with clear acceptance or rejection.
Fair Value Gap is shown as a chart overlay: candles remain the source of truth, while the line or zone frames bias, stretch, or invalidation.
Bullish gap: high two candles ago < current lowBearish gap: low two candles ago > current highA fair value gap marks an imbalance left by displacement. It matters most when price returns to the zone and reacts with clear acceptance or rejection.
Use it as a context zone. In CandleOps it is most useful when price returns into the gap after a strong displacement move.
Fair Value Gap is a context tool first. Use it to make the market state easier to explain before the trade, then judge the mission by whether that explanation held up after the reveal.
The best fair value gaps align with trend direction and a clear liquidity sweep or breakout structure.
Confirmation should be visible before the trade starts. If the indicator says one thing and raw candles reject that story, skip the mission or record it as a conflicted setup.
Imbalance zone detection
Not every gap needs to fill, and not every fill deserves a trade.
Because Fair Value Gap sits on the price chart, the common trap is treating a touch, cross, or flip as automatic permission. The safer rule is price first, indicator second, execution last.
The indicator should change the decision process, not decorate it. If it does not affect direction, invalidation, target placement, or the decision to skip, remove it from the active tactical handbook for that drill.