A Fair Value Gap indicator is a practical trading tool that highlights price imbalances directly on the chart. In Forex trading, these imbalances often appear when price moves with strong momentum and leaves behind an inefficient area where very little balanced two-sided trading took place.
Many professional traders use Fair Value Gaps, often called FVGs, to identify potential retracement zones, continuation setups, liquidity reactions, and high-probability entry areas. The edge is not in trading every gap blindly. The real work is in combining the indicator with market structure, trend direction, liquidity, session behavior, stop loss placement, take profit planning, and emotional discipline.
