Fair value gap

A zone left by a fast three-candle move, where the wicks of the first and third candle don't overlap.

What it means

Price moved through the zone so quickly that little trading happened there; it often comes back to it later.

What to watch

How price reacts when it returns to the gap: some gaps hold, others are filled completely.

How Compass-Alpha uses it

Background only; not used in any figure on Compass-Alpha.