Glossary / Market structure

Fair value gap (FVG) / imbalance

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

Stepped white and ice-blue blocks forming a rising landscape, an unlabeled picture of market structure.
Illustration of the idea, not a market chart and not a result.

A three-candle pattern where the wick of the first candle and the wick of the third candle do not overlap, leaving a price band the middle candle passed through with little two-way trade.

How traders use it: Traders watch whether price returns to "fill" part of the gap, and whether the gap holds (respected) or is closed through (inverted).

Common mistake: Expecting every gap to be filled or to hold. Gaps in strong trends can stay open for a long time.

Related: Displacement · Order block · Retest

See this term in the full glossary · All terms

Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.