What is Fair Value Gap?
Fair value gap is modern price-action terminology for a three-bar imbalance area where adjacent price ranges leave a portion of the middle bar relatively untraded.
Fair Value Gap matters because it gives analysts a consistent way to discuss technical-analysis methodology. These concepts provide the conceptual vocabulary behind many chart annotations, pattern labels and discretionary trading frameworks.
How to read Fair Value Gap
Read Fair Value Gap together with trend, timeframe, volatility and market context. Its main role is technical-analysis methodology, not replacing the underlying price series.
What Fair Value Gap does not tell you
The term should be read as descriptive chart language rather than as a self-contained forecast. Different analysts can apply discretionary frameworks differently, so reproducibility requires explicit rules and anchor choices.
Use in bonds, rates and macro markets
BondStats treats technical-analysis frameworks as descriptive market language. Fundamental valuation, policy expectations and market plumbing remain separate analytical layers.
Technical chart structures are context, not certainty. BondStats does not present a candlestick, drawing tool, indicator reading or chart pattern as a standalone investment recommendation. Where a concept depends on discretionary anchors or parameter choices, those choices should be made explicit.