Wick

Bearish fair value gaps

Fair Value Gaps

A resistance zone above price

A bearish FVG mirrors the bullish version. Candle 1's low sits above candle 3's high, leaving untraded space above current price that often acts as resistance on a bounce.

The top edge is the ceiling

The top of a bearish FVG, candle 1's low, marks the ceiling. A close back above it suggests the bearish imbalance has failed and buyers have taken control of that zone.

Strong trends may only tap it

In a strong downtrend, price often only taps the bottom of a bearish FVG before continuing lower, never reaching the top. Waiting for a full fill can mean missing the trade entirely.

Check yourself

A bearish FVG is most useful as a…

  1. Potential resistance zone to sell a bounce into correct
  2. Support zone to buy into
  3. A guaranteed reversal signal on its own

It marks an untraded zone above price where sellers previously took control, a logical place for supply to reappear.

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