Blog with fair_value_trading

Three-candle diagram showing a bullish Fair Value Gap: Candle A, the impulsive Candle B, and Candle C, with the untraded gap marked between Candle A's high and Candle C's low

What Is Fair Value and How Do Traders Use Fair Value in Pricing?

If you have spent any time looking at trading charts, you have probably heard the term fair value thrown around. The answer is surprisingly split: in one context, it is a theoretical price calculated by quants and institutional traders; in another, it is a visual pattern on a price chart called a Fair Value Gap (FVG), which most active traders actually care about.

August 2520