What is Fair Value Gap (FVG) and Why Price Always Comes Back There

After spending some time in the charts, you start noticing a pattern that doesn’t get talked about enough.

Price doesn’t just move… it jumps.

There are moments where the market moves so fast that it almost feels like it skipped something. You see a strong candle, maybe even a few in a row, and then later price slowly makes its way back to that same area.

At first, it looks random. Like the market just changed its mind.

But after a while, you realize it keeps happening.

That “empty” space price leaves behind is what traders call a Fair Value Gap, or FVG.

In simple terms, it’s an area where price didn’t trade properly. The move was too aggressive, too one-sided. Buyers or sellers took control so quickly that the market didn’t spend enough time exchanging orders in between.

And the interesting part is this: the market almost always comes back to that area.

Not immediately, not every single time, but often enough that once you see it, you can’t unsee it.

The way I look at it is pretty simple. I don’t try to make it complicated or turn it into some perfect formula. I just look for those moments where price clearly moved with strength. Big candles, clean direction, no hesitation. When I see that, I go back and check if there’s a gap left behind between the candles.

If there is, that’s the area I pay attention to.

When price is moving up fast, that gap forms below. When price is dropping hard, the gap forms above. And instead of chasing the move, I just wait. That’s probably the hardest part, because the move already happened and it feels like you’re missing out.

But most of the time, price comes back.

And when it does, that’s where things get interesting.

I don’t just enter because price touched the gap. That used to be one of my biggest mistakes. I would see an FVG, jump in immediately, and get stopped out more often than not. Over time, I realized the gap itself is not the entry. It’s just the area of interest.

What actually matters is how price behaves when it comes back.

Sometimes it taps the zone and rejects instantly with a wick. Sometimes it slows down, forms a small structure, and then continues. And sometimes… nothing happens. It just goes straight through.

That’s why patience matters more than the setup itself.

Another thing that made a big difference for me was understanding that not every FVG is worth trading. Clean ones, formed after strong moves, tend to work better. Messy charts, choppy moves, those usually don’t give the same reaction.

And when an FVG lines up with something else, like a previous level or an order block, that’s when it starts to feel like a real setup instead of just a random zone.

At some point, you stop seeing it as a “strategy” and more like a behavior of the market. Price moves fast, leaves imbalance, and later comes back to deal with it.

Once you get used to that idea, you stop chasing every candle. You stop feeling like you have to be in every move.

You just wait for price to come back to places that actually make sense.

And trading becomes a lot more calm after that.

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