> For the complete documentation index, see [llms.txt](https://smartmoney.gitbook.io/smart-money-concepts/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smartmoney.gitbook.io/smart-money-concepts/definitions/fair-value-gaps.md).

# Fair Value Gaps

A fair value gap is when the price gaps up or down to a level that is considered to be fair value. 

ICT Concepts traders believe that fair value gaps can be a good opportunity to enter a trade in the direction of the gap.

Magnet for price in the future to fill the inefficiency as there are many resting orders

<figure><img src="https://929344964-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5nf3g52cn0PXZ0Xzzs9m%2Fuploads%2FpGm9ZvoT89nMlh9VwnHw%2Fimage.png?alt=media&amp;token=4f8a7e78-ac4c-48c5-bc34-b7d0f76c379d" alt=""><figcaption></figcaption></figure>

<figure><img src="https://929344964-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F5nf3g52cn0PXZ0Xzzs9m%2Fuploads%2FergRmc9ZVRLu5L6kV1E8%2Fimage.png?alt=media&amp;token=3c62cbf0-feda-4b11-9598-c2bbf3423aca" alt=""><figcaption><p>Lux Indicator showing FVG</p></figcaption></figure>

An imbalance can lead to a fair value gap, but a fair value gap does not necessarily mean that there is an imbalance. For example, a fair value gap could be caused by news or other factors that affect the price of an asset.