OPEN-SOURCE SCRIPT

FVG Detector [TradingFinder] Fair Value Gap-Imbalance-Mitigated

🔵 Introduction
When the market makes a strong move in the form of a "Marubozu" or "Spike" candlestick and consecutive candles move without a retracement, the maximum place where a "FVG" or "Fair Value Gap" is created.

🔵 Definition
To describe this precisely, whenever a move occurs where the current candle does not cover the body of the previous and subsequent candles, a fair value gap is created.
Important: The significant point is that, because there is no equilibrium between buyers and sellers in these conditions, and market power is in the hands of buyers or sellers, the market is likely to move towards these areas.
An example of "FVG" in a price increase where we expect buying on the return to it.
snapshot

An example of "FVG" in a downward trend where the market will move towards it in a downward direction.
snapshot

🔵 How to Use

🟣Bearish FVG
In a downward trend, "orange boxes" are drawn, which are the same [Bearish FVG] and can act as "support" zones along the downward path, and we expect the price to continue its downward trend on return.
snapshot

🟣Bullish FVG
In an upward trend, "green boxes" are drawn, which are [Bullish FVG]. They act exactly like support in the upward path, and we expect the price to continue its upward trend on return.
snapshot

🟣 Auxiliary Definitions
Imbalance: As mentioned above, market power is in the hands of one of the two sides, buyers or sellers, and a non-equilibrium zone is created. It may be completed in whole or in part in subsequent price movements.
Mitigated: If the price returns to the "FVG" area and fills it, we call it "Mitigated," and most "pending" or "profit and loss limits" positions are executed. We will not have a specific reaction on the return of the price.

🔵Settings
Very Aggressive: In addition to the initial condition, another condition is added. For an upward FVG, the maximum price of the last candle should be larger than the middle candle's maximum price. Similarly, for a downward FVG, the minimum price of the last candle should be smaller than the middle candle's minimum price. In this mode, a very small number of FVGs are eliminated.

Aggressive: In addition to the conditions of the Very Aggressive mode, in this mode, the size of the middle candle should not be small. In this mode, a larger number of FVGs are eliminated.

Defensive: In addition to the conditions of the Very Aggressive mode, in this mode, the size of the middle candle should be relatively large, and the majority of it should be made up of the body. Additionally, to identify upward FVGs, the second and third candles must be positive, and to identify downward FVGs, the second and third candles must be negative. In this mode, a large number of FVGs are eliminated, leaving only those with suitable quality.

Very Defensive: In addition to the conditions of the Defensive mode, the first and third candles should not be very small-bodied doji candles. In this mode, the majority of FVGs are filtered out, leaving only the highest quality ones.

🔵 Features
Show Demand FVG: Displays demand-related boxes, which can be "off" and "on."
Show Supply FVG: Displays supply-related boxes along the path, and can be turned "off" and "on."
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🔵 Indicator Advantages
In this indicator, I have implemented 4 types of "filters" that allow you to select one based on the trading symbol, timeframe, etc. From "Very Aggressive" to "Very Defensive" mode, it is possible to select.
In most indicators, all FVGs are displayed, and the chart becomes full of lines. But this unique feature allows the trader to manage the drawing of boxes.
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Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

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