Glossary term
Fair Value Gap
A price-action zone where traders believe price moved too quickly through an area.
In SMC language, a fair value gap is an imbalance created when price moves sharply and leaves a zone with little overlap between neighboring candles. Traders often expect price to revisit or react around that zone.
Example: If SPY gaps higher and leaves a candle structure with little overlap, an SMC trader may mark that area as a potential support zone.