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What is a Fair Value Gap? ICT Explained
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Beginner7 min readApril 2, 2026

What is a Fair Value Gap? ICT Explained

Fair Value Gaps are one of the most powerful ICT concepts. Learn what they are and how to trade them.

Framework note: ICT terms are interpretations of price action, not proof of institutional motives or a market algorithm’s intent. No setup is guaranteed. Test clearly defined rules, account for costs and slippage, and use risk limits before risking capital. Read our editorial policy.

A Fair Value Gap is a 3-candle pattern where price moves so fast it leaves an inefficiency that the algorithm returns to fill.

RELATED READING

Continue with guides selected for overlapping concepts and practical context.

Intermediate · 10 min readInverted Fair Value Gap (IFVG): ICT Rules and RetestsWhat is an inverted fair value gap (IFVG)? Review the close-through rule, retest examples and ways to test the pattern without assuming a reversal or institutional orders.Intermediate · 11 min readICT Fair Value Gaps: Criteria for Classifying and Testing SetupsReview how traders identify a three-candle imbalance, document context and invalidation, and compare outcomes across every qualifying example rather than labelling winners valid after the fact.Beginner · 15 min readICT Fair Value Gaps (FVG): Formation, Retests and Risk RulesLearn how traders define three-candle fair value gaps, set retest and invalidation rules, and review all outcomes with execution costs. A gap does not reveal who traded there or predict that price will return.
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