Two candles gap body-to-body, close to open — but their wicks still overlap. Looser than a fair value gap, and built from two candles instead of three.
Setup
Price drifts up normally.
SETUP2-CANDLEDISPLACERETESTCONT.
Alternates bullish / bearish automatically
It doesn't always look like this
Volume imbalance vs. fair value gap — an FVG needs three candles with wicks that never touch. A volume imbalance is just two candles: the bodies gap, but the wicks still overlap.
Usually smaller — because the wicks overlap, the untraded zone is typically thinner than a true FVG.
Can sit right next to a real FVG — a strong displacement often leaves both a volume imbalance and a fair value gap back to back, stacked on top of each other.
Works both directions — a bearish volume imbalance mirrors it: two down candles gapping body-to-body with overlapping wicks.