Three-candle imbalance
A fair value gap (FVG) appears when a middle candle’s body leaves a gap between wicks of candle 1 and candle 3. SMC traders treat unfilled gaps as areas price may revisit to “rebalance.”
How to use (education)
- Mark gaps only after a clear impulsive leg.
- Note whether gap aligns with higher-timeframe bias.
- Log outcomes — many gaps get filled; some continue without fill.
See also combining tools cleanly — do not stack ten confluences without data.