Fair Value Gap (FVG) in trading refers to a price inefficiency or imbalance that occurs when there is a significant gap between the opening, high, low, and closing prices of three consecutive candles. It typically happens when one candle's range fails to fully overlap with the previous and subsequent candles, leaving a "gap" in the price action.

Traders view this gap as a potential area where the price might return to fill the imbalance before continuing in its original direction. This concept is used in various trading strategies to identify potential entry or exit points based on market inefficiencies.

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