Fair Value Gaps are commonly used by price-action traders to identify areas where price moved aggressively and left an imbalance between candles.
What is a Fair Value Gap?
In practical terms, a Fair Value Gap is an area created when rapid price movement leaves limited overlap between surrounding candles. Traders may mark that area as a potential point of interest if price returns.
Why traders watch them
FVGs can help organize where an imbalance occurred, but they do not mean price is required to revisit or respect the area.
Combine FVGs with context
Higher-timeframe direction, liquidity, market structure, volume and the location of the gap can all affect how useful the information is. A gap in isolation is not a complete trading setup.
FVGs inside NGF
Fair Value Gaps are included within NGF systems as one part of a multi-factor workflow. The goal is to make relevant context visible alongside confirmation and risk levels.
Trading involves risk. Fair Value Gaps are analytical concepts, not guaranteed entry or reversal signals.