A three-candle imbalance where price moved so fast it left a gap that the market often returns to 'fill'.
An FVG (or imbalance) is the gap between the wick of the first candle and the wick of the third candle across a strong middle candle. It marks a zone where trading was one-sided and 'fair value' was skipped.
Price frequently retraces to fill part or all of the gap before continuing, so an FVG can act as a magnet and a potential entry zone in the direction of the original move.
Look for a big impulsive candle with a gap between the high of the candle before it and the low of the candle after it (for a bullish FVG), or the mirror for a bearish one.
Not every gap gets filled, and gaps form constantly on lower timeframes. Use higher-timeframe FVGs with structure — treat it as a zone of interest, not a guarantee.
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