Fair Value Gaps (FVG) Quiz: Test Your Knowledge

Question 1

What is a fair value gap?

Accepted Answer

A band of prices a fast move skipped through, leaving an imbalance the market often returns to

Question 2

How does a fair value gap differ from a traditional price gap?

Accepted Answer

The candles are continuous with no visible hole; the gap is the untraded slice the middle candle raced through

Question 3

In a bullish fair value gap, what defines the gap across the three candles?

Accepted Answer

The high of the first candle sits below the low of the third candle, and the space between them is the gap

Question 4

Once a bullish fair value gap has formed, how do traders commonly treat it?

Accepted Answer

As a possible support zone that price may retrace down into before continuing up

Question 5

What do ICT traders call the midpoint of a fair value gap?

Accepted Answer

The consequent encroachment

Question 6

What tends to make a stronger fair value gap setup?

Accepted Answer

It follows a real displacement, aligns with the higher-timeframe trend, and sits after a liquidity sweep

Question 7

Do fair value gaps always fill?

Accepted Answer

No; many fill, but plenty never do, especially in a strong trend