the fair value gaps report on edgeful detects fair value gaps in candlestick data by identifying 3-candle patterns where candle 1 high is below candle 3 low (bullish FVG) or candle 1 low is above candle 3 high (bearish FVG). Calculates mitigation status based on whether subsequent price action fills the gap according to specified percentage and mitigation criteria. Returns statistics on mitigated versus unmitigated gaps for both bullish and bearish patterns.

this is one of the 150+ reports available on the edgeful platform. here's how it works, what the data shows, and how traders use it.

table of contents

• what the fair value gaps report measures
• how the calculation works
• available subreports
• how traders use fair value gaps data
• combining fair value gaps with other reports
• key takeaways

what the fair value gaps report measures

Detects fair value gaps in candlestick data by identifying 3-candle patterns where candle 1 high is below candle 3 low (bullish FVG) or candle 1 low is above candle 3 high (bearish FVG). Calculates mitigation status based on whether subsequent price action fills the gap according to specified percentage and mitigation criteria. Returns statistics on mitigated versus unmitigated gaps for both bullish and bearish patterns.

the report is available for futures, stocks, ETFs, forex, and crypto. you can filter by ticker, session (NY, London, Asian, full globex, or custom), and lookback period (1 month to 5+ years).

how the calculation works

according to edgeful data, the fair value gaps report follows a specific calculation process:

the fair value gaps report identifies FVG patterns in intraday price data and tracks whether they get filled.

• a bullish fair value gap occurs when there's a gap between one candle's high and a later candle's low, meaning price moved too fast and left unfilled space
• a bearish fair value gap is the opposite, a gap between one candle's low and a later candle's high
• the report tracks whether price returns to fill (mitigate) these gaps during the rest of the session
• you can customize the fill threshold to track partial or full mitigation
• percentages show fill rates in both directions, helping you identify how reliable FVGs are as support/resistance levels

available subreports

the fair value gaps report has 1 subreport for deeper analysis:

by size. analyzes Fair Value Gaps in price data by categorizing them into six size ranges from 0-0.024% up to >0.25%.

how traders use fair value gaps data

• identifying unfilled price gaps that may act as support or resistance levels
• setting profit targets based on historical gap fill percentages and mitigation rates
• risk management by avoiding trades in direction of unmitigated gaps
• entry timing by waiting for partial or complete gap mitigation before position entry
• market structure analysis using gap distribution across different trading days

the data doesn't tell you to trade. the fair value gaps report tells you the historical performance of the setup in front of you. what you do with that information is your decision.

results require customization, time, and effort. the numbers change depending on your ticker, session, and lookback period. always check the data for your specific conditions.

combining fair value gaps with other reports

the fair value gaps report works best when combined with other edgeful reports for confluence:

• use the what's in play dashboard to see fair value gaps data alongside your other favorite reports in one view
• the screener lets you scan up to 49 tickers for fair value gaps setups across 4 reports simultaneously
• edgeful AI can analyze fair value gaps data alongside other reports and find patterns you'd never spot manually

key takeaways

• the edgeful fair value gaps report measures detects fair value gaps in candlestick data by identifying 3-candle patterns where candle 1 high is below candle 3 low (bullish fvg) or candle 1 low is above candle 3 high (bearish fvg). calculates mitigation status based on whether subsequent price action fills the gap according to specified percentage and mitigation criteria. returns statistics on mitigated versus unmitigated gaps for both bullish and bearish patterns.
• available for futures, stocks, ETFs, forex, and crypto with full session, ticker, and date range filtering
• 1 subreport available: by size
• part of the 150+ reports included in the edgeful essential plan ($49/month or $39/month annual)
• works best when combined with other reports using what's in play, the screener, or edgeful AI

trading involves risk. past performance and historical data do not guarantee future results. the statistics referenced in this post are based on historical data and may not reflect future market conditions. always trade with proper risk management.