Learn Price delivery Fair Value Gap (FVG) — BISI & SIBI
Fair Value Gap (FVG) — BISI & SIBI
A three-candle gap left by one-sided price delivery. Price is drawn back to rebalance it.
A fair value gap forms across three candles when the wicks of the first and third never overlap. In a bullish FVG (BISI — Buyside Imbalance, Sellside Inefficiency) the low of candle three sits above the high of candle one, leaving a window where only buyers traded.
The bearish mirror is the SIBI (Sellside Imbalance, Buyside Inefficiency): price fell so fast that the third candle’s high never reached the first candle’s low.
The ICT concept is that the market seeks to rebalance these inefficiencies, so a gap acts like a magnet first and a reaction zone second. The gap’s midpoint — Consequent Encroachment (CE) — is the most sensitive price inside the zone and a common limit-entry level.
How to trade it
- In an uptrend, wait for price to retrace into a bullish FVG (ideally to CE) and hunt longs; mirror with bearish FVGs in a downtrend.
- Prefer gaps created by displacement — a violent, large-bodied move — over gaps left by slow drift.
- Stack confluence: an FVG in discount, inside a kill zone, after a liquidity sweep is an A+ zone. An FVG alone is just a gap.
Pitfalls
- Trading every tiny gap on a low timeframe — filter by size relative to ATR or you will bleed on noise.
- Holding on after a candle body closes fully through the gap: that invalidates it and flips it to the IFVG playbook.
- Expecting an instant fill — gaps can rest untouched for days before price returns.
See Fair Value Gap (FVG) — BISI & SIBI detected live.
The workstation marks it on the chart the moment it prints.
More in Price delivery