FairValueGaps.comCheat sheet
Bullish

Bullish fair value gap: rule, chart and example

A bullish fair value gap forms when price rises fast enough that the low of the third candle is above the high of the first. The space between those two wicks is the gap.

The rule

Take three candles in a row. A gap is bullish when the low of candle 3 is above the high of candle 1. The gap is the range from the high of candle 1 up to the low of candle 3.

Why a fair value gap is emptyOn the left, three candles with a large up candle between them leave a gap. On the right, a bar chart of how many trades happened at each price: many outside the gap, very few inside it.1. Price moves fast123the gapOne side dominates and price jumps.2. Few trades happen inside the gapmany trades at the other pricesfew trades hereTrades done at each price (teaching units).The empty stretch is what traders mark.
Diagram, not a market chart. The usual explanation, offered as a way to think about the pattern and not a proven law of markets.

Candle 2 is usually a large rising candle, but the rule does not require it. The comparison is strict: if the two wicks only touch, there is no gap.

The mirror image is a bearish fair value gap. The full picture of both is in the guide.

A bullish gap on a real chart

EURUSD15 minute3 bullish 3 bearish ยท 6 gaps by the rule
1.118001.119001.1200006:0008:0010:0012:0014:0016:00123456
  1. 1Bullish1.11769 to 1.11780formed 07:15 UTCTraded through at 09:30 UTC
  2. 2Bullish1.11838 to 1.11889formed 07:45 UTCTraded through at 08:30 UTC
  3. 3Bearish1.11888 to 1.11889formed 08:15 UTCTraded through at 08:15 UTC
  4. 4Bearish1.11846 to 1.11853formed 09:00 UTCTraded through at 10:30 UTC
  5. 5Bullish1.11802 to 1.11808formed 10:30 UTCNot revisited by 18:00 UTC
  6. 6Bearish1.11908 to 1.11918formed 17:00 UTCTraded through at 17:15 UTC
EURUSD, 2026-10-13, 06:00 to 18:00 UTC. Real candles: Dukascopy 15-minute candles, read 2026-10-31. Fair value gap by the three-candle wick rule, no minimum size. Each box runs from its gap until a later candle trades through its far edge, or to the end of the chart.

EURUSD, 13 October 2026. The rule finds 6 gaps in this window, 3 bullish and 3 bearish. The widest gap formed when the candle closing at 07:45 UTC completed, and it is a bullish one. Bullish gaps are the amber boxes.

This window was chosen because it reads clearly. It is not typical, and it says nothing about what the next gap will do.

What traders say about it

Many traders read a bullish gap as a zone price may fall back into before rising again. Others treat it as a sign that buyers were in control during the move. Both are interpretations of the pattern. A gap does not say that price must return, that a return will hold, or which way price goes next.

Educators draw the line in different places. Some ignore small gaps, some need a large middle candle, some use candle bodies. Check the definition before you compare charts. Fair value gap versus imbalance lists the words.

What the sample counts

In 1,500 session windows of seven pairs and gold, the plain rule found 7,280 bullish gaps. Of the 5,977 with at least 8 candles left in their window, 4,532 of 5,977 (76%) were touched within 120 minutes, and 3,629 of 5,977 (61%) were filled in that time.

These are counts for one sample and one size-free rule. They are not a chance for the next gap and not a result for any trade. The examples page gives the method.

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