Fair Value Gap [CT TRADERS]

What does a Fair Value Gap do?

👉 It marks areas where price moved too fast, creating an imbalance between buyers and sellers.

This usually happens when institutional money enters the market aggressively.

Why is it important?

Because the market tends to revisit these areas to “rebalance” or fill the gap.

When price returns to an FVG, one of these usually happens:

🔼 Bounce (continuation of the move)

🔽 Rejection (price reversal)

Types of Fair Value Gaps

🔹 Bullish FVG

Created during a strong upward move

Acts as a support zone

Price often returns to it before continuing higher

🔹 Bearish FVG

Created during a strong downward move

Acts as a resistance zone

Price often returns to it before continuing lower

How traders use FVGs

✔️ Identify key price zones
✔️ Improve entry precision
✔️ Avoid chasing price
✔️ Understand institutional market behavior