Report Guides
FVG frequency, mitigation rates, and effectiveness as reversal targets
A Fair Value Gap (FVG) is a three-candle pattern where the middle candle's body creates a gap between the wicks of the first and third candles. This represents a price imbalance where one side aggressively dominated. Price often returns to "fill" or "mitigate" these gaps.
Identify FVGs on your primary timeframe. When price retraces to an FVG, look for entry signals (rejection candle, delta divergence) to trade in the original move direction. The midpoint of the FVG (consequent encroachment) is the most common reversal point within the gap.