# 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.&#x20;

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="/files/ADRRDBMNA9xnvcDvBh90" alt=""><figcaption></figcaption></figure>

<figure><img src="/files/YknWgnFfCjsJewvYPl3H" 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.


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