These Three Candles Detect Fair Value Gaps

Learn to identify fair value gaps using a simple three-candle pattern. A fair value gap, or FVG, forms when price moves aggressively through an area and leaves a gap between the wick of the first candle and the wick of the third candle. To spot a fair value gap, focus on three consecutive candlesticks. The middle candle is the displacement candle that creates the strong move. Then compare candle one and candle three. If their wicks do not overlap, the untouched price range between them is the fair value gap. Understanding how to find fair value gaps helps traders recognize price imbalances and areas where the market moved too quickly. Learn what creates an FVG, how the three-candle fair value gap pattern works, and what to look for when identifying fair value gaps on your charts. -------------------------------------------------------------------------------- This content is provided by NinjaTrader, LLC for educational and informational purposes only and does not constitute an offer, solicitation, or investment advice. Futures trading involves substantial risk and is not suitable for everyone; losses may exceed the initial investment, and past performance is not indicative of future results. NinjaTrader makes no representations regarding the accuracy or completeness of the information, and any third-party opinions expressed are their own and not endorsed by NinjaTrader. Testimonials and endorsements by third parties reflect individual experiences, may be solicited and/or compensated, and may not be representative of typical results. View Disclosures: ninjatrader.com/disclosures/ Futures trading involves significant risk and is not suitable for everyone. Since 2003, NinjaTrader has been revolutionizing the way retail traders engage with futures. We've empowered our community of nearly 2 million traders with cutting-edge technology, ultra-low commissions, and world-class support. Our modern, cloud-based platform—available on desktop, web, and mobile—gives traders the freedom to seize market opportunities anytime, anywhere. The content provided is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any futures, options, or derivative products. NinjaTrader Group, LLC and its affiliates make no representations or warranties as to the accuracy or completeness of the statements or any information contained in the content and disclaim all liability. NinjaTrader Group, LLC’s affiliated companies are NinjaTrader Clearing, LLC dba NinjaTrader, Tradovate, and Kraken Derivatives US (“NTC”), NinjaTrader, LLC (“NT”) and NT Technologies, LLC (“NTT”). NTC is registered with the CFTC as a futures commission merchant (NFA ID#0309379). It carries futures trading accounts, processes futures trades, provides customer service and generates reports for its clients. NT is a software development company that owns and supports proprietary technology relating to and including the NinjaTrader and Tradovate trading platforms GET NINJATRADER: https://account.ninjatrader.com/welcome FULL RISK DISCLOSURE STATEMENT: https://ninjatrader.com/risk-disclosure-clearing/ #fairvaluegap #fairvaluegaps