Fair Value Gap (FVG)
A fair value gap is a three-candle pattern where the wick of candle one and the wick of candle three do not overlap, leaving an untraded price area in the middle. It marks a moment where buying or selling was so aggressive that price skipped a level. Markets tend to return to those areas to rebalance before continuing.
Why it works
Imbalance is a footprint of intent. Price returning to fill it gives you an entry with a tight, logical invalidation.
Any, but a 15m gap carries far more weight than a 1m gap.
All sessions.
The checklist
- 1Three consecutive candles with a visible gap between wick one and wick three.
- 2The gap was created with momentum, not in a quiet chop range.
- 3The gap is still unfilled.
Execution
On the first touch of the gap, ideally at the 50% level of the gap.
Beyond the far edge of the gap.
The liquidity pool the impulse was heading toward.
When you should not take it
- Ignore gaps created inside a tight range — they fill and mean nothing.
Turn it on and MFT watches NQ, ES and Gold for you, then alerts you at the sweep, at the inversion and at the entry window.
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