Fair value gaps: the price nobody traded

Reading a chart · OnlyTrade trading school

When a move is violent, a band of prices gets skipped: the low of one candle never touches the high of the candle two back. That band had almost no trade in it — no agreement, no volume, nothing to defend it. Markets tend to come back and fill such a gap later, which is why it is drawn on the chart as a zone worth watching. It is a magnet, not a rule: plenty of gaps stay open for months, and a gap in the direction of a strong trend is often just the shape of strength.

About this lesson

Written by the OnlyTrade team as a general explanation of a market mechanic. It uses no live market data.

Education, not investment advice. No method or result is guaranteed, and trading can lose money. Read the Risk Disclosure.

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