Points of Interest (POI)/
Extreme Fair Value Gap (EFVG)
TL;DR
An Extreme Fair Value Gap (EFVG) is a high-conviction variant of the standard FVG that occurs when a massive displacement candle creates a gap that spatially overlaps with an Order Block (OB). The overlap zone — where the FVG and OB share the same price range — becomes a premium entry area because it combines imbalance (unfilled orders from the gap) with institutional footprint (the OB).
How It Works
- 1
Price is trending, and a specific candle acts as an Order Block — the last candle of the dominant move before a brief pause or retracement.
- 2
A massive displacement candle launches in the trend direction, creating a Fair Value Gap (FVG) — a three-candle gap where no price overlap exists between candles 1 and 3.
- 3
The FVG zone overlaps with the body range of the nearby Order Block. This overlap region is the Extreme FVG — a zone where two institutional signatures converge.
- 4
Price continues in the trend direction away from the EFVG zone, leaving it unfilled.
- 5
Eventually, price retraces back into the EFVG overlap zone. Smart Money uses this retest to accumulate or distribute positions against retail traders who are chasing the move.
- 6
The EFVG zone acts as high-probability support/resistance — price reacts and continues in the original trend direction.
LiquidMind's POI detection pipeline identifies EFVGs by detecting FVGs through price gap analysis and then checking for spatial overlap with the nearest Order Block. The system computes an overlap ratio (FVG ∩ OB / smaller zone) which must exceed a threshold. EFVGs with higher overlap and stronger displacement momentum receive elevated confidence scores. The algorithm also deduplicates overlapping EFVGs using spatial proximity checks to avoid redundant entries.