What is a Fair Value Gap (FVG) and how do you trade it?

Trade FVGs by waiting for price to retrace back into the gap, then enter in the direction of the original move. Use the 50% level of the FVG as your entry. SL below the FVG for longs.

An FVG is a 3-candle pattern where candle 1 high and candle 3 low do not overlap (for bullish FVG). This gap represents inefficiency — price often returns to fill it.