Fair Value Gap vs Price Gap (Window)
A detailed side-by-side comparison of the Fair Value Gap and Price Gap (Window) chart patterns.
A three-candle price inefficiency where the first and third candle wicks don't overlap, leaving an unmitigated gap.
Best for
Identifying price inefficiencies for precise entries
A traditional gap between sessions where no trading occurred, visible as empty space on the chart.
Best for
Trading overnight gaps and gap-fill strategies
Key Differences
- FVG occurs within continuous trading; Price Gap is between sessions
- FVG is visible in candle wick relationships; Price Gap is an empty space
- FVG is a Smart Money Concept; Price Gap is traditional analysis
- FVG focuses on candle body and wick overlap; Price Gap on open vs close
- Both represent price inefficiencies that tend to get filled
When to Use Fair Value Gap
Use Fair Value Gaps on any timeframe to identify areas where price moved too quickly, leaving an inefficiency. Expect price to return and 'fill' the gap before continuing.
When to Use Price Gap (Window)
Use traditional Price Gaps for gap-fill strategies, especially at the market open. Common gaps tend to fill the same day, while breakaway gaps often don't.
Frequently Asked Questions
What is the difference between a Fair Value Gap and a regular gap?▾
A Fair Value Gap (FVG) is an inefficiency between candle wicks during continuous trading. A regular gap is empty space between the close of one session and the open of the next. Both are inefficiencies but identified differently.
Do Fair Value Gaps always get filled?▾
Not always, but most do eventually. FVGs created during strong trends may only get partially filled before price continues. Those in consolidation phases tend to fill completely.