ClearPath Trader

Fair Value Gap

Imbalance candle zone where price moved so fast that a wick/body gap was left. Traders watch these inefficiencies as magnets for later fills.

Category: Technical · Complexity: ★★☆☆☆ (2/5)

Tags: technical, study-card, price

Study card — educational illustration only (no live overlay in Charts).

Fair Value Gap chart illustration

Formula

Fair Value Gap is computed from price, volume, breadth, or macro prints depending on class (Technical). See the description for the defining inputs.

How to read

Read Fair Value Gap as a labeling tool: it describes a condition (trend, stretch, participation, or macro). Confirm with price structure, not the indicator alone. This entry is a study card — not every encyclopedia model has a live chart overlay.

Limitations

Fair Value Gap can lag, repaint (some drawings), or stay extreme in trends. It is not financial advice and not a broker signal.

Typical settings

Use the author's original defaults first; change one parameter at a time.

Fair Value Gap is part of the ClearPath Encyclopedia of Indicators — 190 models explained with standard SVG illustrations, so you can study an indicator before you put it on a live chart.

Browse the full indicator directory →