The FVG - Fair Value Gap the explanation!

IPDA not only engineers liquidity in the markets by moving price, by design it has to offer fair value for buying and for selling. This too is based on its market efficiency paradigm logic. In some cases, IPDA may reprice too quickly in one direction over another, thus leaving an inefficiency in price delivery (A FVG). In order for IPDA to maintain its fair value parameters, it will reprice to rebalance the inefficient price action to offer fair value to both sides of the market. The example above is known as a BISI. This is where IPDA has repriced to buyside too quickly. This leaves a buyside imbalance (the space between the red lines). The wicks offer both buying and selling in the up and down movement. The body where no wicks overlap is all buyside delivery and inefficient of any sellside
delivery . The example above is known as a SIBI. This is where IPDA has
repriced to sellside too quickly. This leaves a sellside imbalance
(the space between the red lines). The wicks offer both buying and selling in the up and down movement. The body where no wicks overlap is all sellside delivery and inefficient of any buyside delivery . In the example above, buyside movement has been redelivered back through the sellside imbalance. The inefficient sellside imbalance has now been matched with buyside price delivery, offering us a balanced price range of both buyside and sellside delivery. When price passes back through this range for a 3rd time and leaves it, this whole range has now been rebalanced. Any upward movement back through this range should be met with strong
resistance (in a bearish market).