Fair Value Gap (FVG)
Definition
A Fair Value Gap (FVG), also called an imbalance or inefficiency, is a three-candle price-action pattern where the second candle's range produces a gap between the first candle's wick and the third candle's wick. The unfilled portion represents 'inefficient delivery' in ICT terminology — price moved through an area without producing two-sided transactions. ICT methodology anticipates that price will return to fill the FVG as institutional traders provide liquidity to the unfilled zone. FVG detection is mechanically codable; EAs commonly use FVGs as entry triggers with a multi-timeframe confluence filter.