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Market StructureF
Fair Value Gap
An imbalance in price action where a candle's range doesn't overlap with the next candle (leaving a gap). Price often returns to fill these gaps.
Example
“The trader identified a fair value gap on the 1-hour ETH chart between $3,200 and $3,250 and placed a limit buy order at $3,225, expecting price to retrace and fill the gap before continuing higher.”