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ICT Fair Value Gap

Smart Money / ICT

Markets abhor a vacuum, trade the return to the gap, confirmed.

how ict fair value gap works
displacement leaves a gapunfilled FVGre-test → BUYcandle1 high never meets candle3 low

What it does

When price moves so fast that candle 1's high never overlaps candle 3's low, it leaves a Fair Value Gap, a slice of prices where almost no business was done. Price tends to revisit it. This version confirms the re-test: the gap must be unfilled, price must trade back into it, a reaction candle must print, and the 50-EMA bias should agree.

How it works

  1. 1Scan recent candles for 3-candle gaps and keep the unfilled ones (drawn as a zone).
  2. 2Confirm 1: an unfilled FVG exists. Confirm 2: price traded back into it.
  3. 3Confirm 3: a reaction candle in the gap. Confirm 4: 50-EMA bias agrees.
  4. 4Confirm 5: the gap isn't fully mitigated. Three-plus must align.