Fair Value Gap (FVG)

How Draconic reads it

FVGs form when price moves with enough urgency that consecutive candles fail to overlap, leaving a zone where orders went unfilled. Unmitigated FVGs — those not yet revisited by price — act as magnets because the orders that created the imbalance remain unfilled and draw price back toward resolution. A bullish FVG (price gapped up) creates a support zone below current price; a bearish FVG (price gapped down) creates resistance above. The mitigation status of an FVG — whether price has returned to fill it — is as important as its existence. A fully mitigated FVG has lost most of its magnetic pull. An unmitigated FVG sitting inside an untested order block at the same price level creates confluence between two independent institutional mechanics.