Fair Value Gap
Imbalance gaps (SMC / ICT).
What it is
Imbalance gaps (SMC / ICT).
A fair value gap (FVG) is a three-bar pattern from ICT / smart-money analysis. A bullish FVG forms when `low[t] > high[t-2]` — the middle bar (t-1) drove price so hard that the wicks of t and t-2 never meet, leaving an unfilled window. A bearish FVG is the mirror: `high[t] < low[t-2]`.
FVGs are read as imbalances: liquidity was skipped, so the market is biased to revisit and 'fill' the gap before the move continues. They are commonly used as pullback entry zones inside the prevailing trend.
Not every gap fills, and FVGs in low-volume sessions are often statistical noise. Filter by trend context and volume before treating them as actionable.
bullish FVG: low_t > high_{t-2} → zone = [high_{t-2}, low_t]
bearish FVG: high_t < low_{t-2} → zone = [high_t, low_{t-2}]Read the full Fair value gap (FVG) definition in the glossary →
Live chart
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Parameters
| Parameter | Default | Range |
|---|---|---|
| Min gap % | 0 | 0 – 5 |
Output fields
The named values this indicator exposes to your entry and exit rules.
Related strategies
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Learn more on the blog
Deep-dive articles explaining this indicator and how to trade it.
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