ArdenAlgo · Concepts · Order block vs. fair value gap

Order block vs. fair value gap

Side by side · Siblings from one displacement leg — and what each one does here

Published 24 Jul 2026 · every rule box checked against mechanization v1 (frozen 16 Jul 2026) · parameter changes land in the changelog first

In three sentences
  • Both objects are born from the same displacement leg: the order block marks where it came from, the gap marks what it skipped.
  • In this engine order blocks supply H1 zone context, while the M15 entry trigger is always an FVG retest.
  • An order block is a candle-based zone; a fair value gap is a three-candle geometric fact.

Same origin, different jobs

When a leg displaces, it leaves two footprints. The last opposite candle before the move is the order block; the untouched band between candle one and candle three is the fair value gap. They describe the same event from two angles, which is why they so often sit within a few points of each other — and why treating them as independent confirmation is double counting.

Order blockFair value gap
What it marksWhere the move originated What the move skipped
DefinitionLast opposite-direction candle before a displacement leg that leaves a gap Three-candle gap: wick one and wick three do not overlap
Requires displacementYes, in the following leg Yes, to be qualified for use
LifecycleDropped once the zone is consumed Dropped once roughly half filled
Role in this engineH1 zone context — helps arm the state machineM15 entry trigger — the retest is the signal
Timeframe usedH1M15 for entry, H1 for context

The practical consequence

A chart can be covered in zones without a single signal firing, because zones only arm the sequence. What fires it is narrower: a sweep of mapped liquidity, a displacement-validated structure shift, and then price returning into the specific gap that shift left behind.

Common questions

If both mark the same move, why keep both?

They answer different questions. The zone question is 'is price in an area worth watching at all?', which order blocks and qualified gaps both help answer. The trigger question is 'is this the bar to act on?', and only the gap retest answers that.

Which one is more reliable?

This site will not rank them, because we have no evidence that would support the ranking. What we can state is the division of labour written into the frozen rules.

Related

Order block · Fair value gap · Full methodology