Volumatic Fair Value Gaps [BigBeluga]🔵 OVERVIEW
The Volumatic Fair Value Gaps indicator detects and plots size-filtered Fair Value Gaps (FVGs) and immediately analyzes the bullish vs. bearish volume composition inside each gap. When an FVG forms, the tool samples volume from a 10× lower timeframe , splits it into Buy and Sell components, and overlays two compact bars whose percentages always sum to 100%. Each gap also shows its total traded volume . A live dashboard (top-right) summarizes how many bullish and bearish FVGs are currently active and their cumulative volumes—offering a quick read on directional participation and trend pressure.
🔵 CONCEPTS
FVGs (Fair Value Gaps) : Imbalance zones between three consecutive candles where price “skips” trading. The script plots bullish and bearish gaps and extends them until mitigated.
Size Filtering : Only significant gaps (by relative size percentile) are drawn, reducing noise and emphasizing meaningful imbalances.
// Gap Filters
float diff = close > open ? (low - high ) / low * 100 : (low - high) / high *100
float sizeFVG = diff / ta.percentile_nearest_rank(diff, 1000, 100) * 100
bool filterFVG = sizeFVG > 15
Volume Decomposition : For each FVG, the indicator inspects a 10× lower timeframe and aggregates volume of bullish vs. bearish candles inside the gap’s span.
100% Split Bars : Two inline bars per FVG display the % Bull and % Bear shares; their total is always 100%.
Total Gap Volume : A numeric label at the right edge of the FVG shows the total traded volume associated with that gap.
Mitigation Logic : Gaps are removed when price closes through (or touches via high/low—user-selectable) the opposite boundary.
Dashboard Summary : Counts and sums the active bullish/bearish FVGs and their total volumes to gauge directional dominance.
🔵 FEATURES
Bullish & Bearish FVG plotting with independent color controls and visibility toggles.
Adaptive size filter (percentile-based) to keep only impactful gaps.
Lower-TF volume sampling at 10× faster resolution for more granular Buy/Sell breakdown.
Per-FVG volume bars : two horizontal bars showing Bull % and Bear % (sum = 100%).
Per-FVG total volume label displayed at the right end of the gap’s body.
Mitigation source option : choose close or high/low for removing/invalidating gaps.
Overlap control : older overlapped gaps are cleaned to avoid clutter.
Auto-extension : active gaps extend right until mitigated.
Dashboard : shows count of bullish/bearish gaps on chart and cumulative volume totals for each side.
Performance safeguards : caps the number of active FVG boxes to maintain responsiveness.
🔵 HOW TO USE
Turn on/off FVG types : Enable Bullish FVG and/or Bearish FVG depending on your focus.
Tune the filter : The script already filters by relative size; if you need fewer (stronger) signals, increase the percentile threshold in code or reduce the number of displayed boxes.
Choose mitigation source :
close — stricter; gap is removed when a closing price crosses the boundary.
high/low — more sensitive; a wick through the boundary mitigates the gap.
Read the per-FVG bars :
A higher Bull % inside a bullish gap suggests constructive demand backing the imbalance.
A higher Bear % inside a bearish gap suggests supply is enforcing the imbalance.
Use total gap volume : Larger totals imply more meaningful interest at that imbalance; confluence with structure/HTF levels increases relevance.
Watch the dashboard : If bullish counts and cumulative volume exceed bearish, market pressure is likely skewed upward (and vice versa). Combine with trend tools or market structure for entries/exits.
Optional: hide volume bars : Disable Volume Bars when you want a cleaner FVG map while keeping total volume labels and the dashboard.
🔵 CONCLUSION
Volumatic Fair Value Gaps blends precise FVG detection with lower-timeframe volume analytics to show not only where imbalances exist but also who powers them. The per-gap Bull/Bear % bars, total volume labels, and the cumulative dashboard together provide a fast, high-signal read on directional participation. Use the tool to prioritize higher-quality gaps, align with trend bias, and time mitigations or continuations with greater confidence.
Search in scripts for "Fair Value Gap"
Higher Time Frame Fair Value Gap [ZeroHeroTrading]A fair value gap (FVG) highlights an imbalance area between market participants, and has become popular for technical analysis among price action traders.
A bullish (respectively bearish) fair value gap appears in a triple-candle pattern when there is a large candle whose previous candle’s high (respectively low) and subsequent candle’s low (respectively high) do not fully overlap the large candle. The space between these wicks is known as the fair value gap.
The following script aims at identifying higher timeframe FVG's within a lower timeframe chart. As such, it offers a unique perspective on the formation of FVG's by combining the multiple timeframe data points in the same context.
You can change the indicator settings as you see fit to achieve the best results for your use case.
Features
It draws higher timeframe bullish and bearish FVG's on the chart.
For bullish (respectively bearish) higher timeframe FVG's, it adds the buying (respectively selling) pressure as a percentage ratio of the up (respectively down) volume of the second higher timeframe bar out of the total up (respectively down) volume of the first two higher timeframe bars.
It adds a right extended trendline from the most recent lowest low (respectively highest high) to the top (respectively bottom) of the higher timeframe bullish (respectively bearish) FVG.
It detects and displays higher timeframe FVG's as early as one starts forming.
It detects and displays lower timeframe (i.e. chart's timeframe) FVG's upon confirmation.
It allows for skipping inside first bars when evaluating FVG's.
It allows for dismissing higher timeframe FVG's if there is no update for any period of the chart's timeframe. For instance, this can occur at lower timeframes during low trading activity periods such as extended hours.
Settings
Higher Time Frame FVG dropdown: Selects the higher timeframe to run the FVG detection on. Default is 15 minutes. It must be higher than, and a multiple of, the chart's timeframe.
Higher Time Frame FVG color select: Selects the color of the text to display for higher timeframe FVG's. Default is black.
Show Trend Line checkbox: Turns on/off trendline display. Default is on.
Show Lower Time Frame FVG checkbox: Turns on/off lower timeframe (i.e. chart's timeframe) FVG detection. Default is on.
Show Lower Time Frame FVG color select: Selects the color of the border for lower timeframe (i.e. chart's timeframe) FVG's. Default is white.
Include Inside Bars checkbox: Turns on/off the inclusion of inside first bars when evaluating FVG's. Default is on.
With Consistent Updates checkbox: Turns on/off consistent updates requirement. Default is on.
ICT Fair Value Gap (FVG) Detector │ Auto-Mitigated │ 2025Accurate ICT / Smart Money Concepts Fair Value Gap (FVG) detector
Features:
• Detects both Bullish (-FVG) and Bearish (+FVG) using strict 3-candle rule
• Boxes automatically extend right until price mitigates them
• Boxes auto-delete when price closes inside the gap (true mitigation)
• No repainting – 100% reliable
• Clean, lightweight, and works on all markets & timeframes
• Fully customizable colors and transparency
How to use:
– Bullish FVG (green) = potential support / buy zone in uptrend
– Bearish FVG (red) = potential resistance / sell zone in downtrend
Exactly matches The Inner Circle Trader (ICT) methodology used by thousands of SMC traders in 2024–2025.
Enjoy and trade safe!
Fair Value Gaps w Signals fair value gaps for resistance and support. It is important to understand ranges with this. An open bearish fair value gaps can indicate a bearish range. A bullish fair value gaps in premium can indicate retracement into the bearish range. A fair value gaps on a high time frame in discount of the range can be a indicator to go long. one can play the fair value gaps in discount or a range back into it for longs. negation of the fair value gaps candle bearish or bullish is stop loss. One would want to see a small time frame turn around story within the fair value gaps you are trading. FVG are support and resistance until the market is balanced. A bearish fair value gaps untouched can indicate the end of a range. The candle before the 1st bullsih fair value gaps could be the beginning of the range. all time frames
Fair Value Gap Signals [Kodexius]Fair Value Gap Signals is an advanced market structure tool that automatically detects and tracks Fair Value Gaps (FVGs), evaluates the quality of each gap, and highlights high value reaction zones with visual metrics and signal markers.
The script is designed for traders who focus on liquidity concepts, order flow and mean reversion. It goes beyond basic FVG plotting by continuously monitoring how price interacts with each gap and by quantifying three key aspects of each zone:
-Entry velocity inside the gap
-Volume absorption during tests
-Structural integrity and depth of penetration
The result is a dynamic, information rich visualization of which gaps are being respected, which are being absorbed, and where potential reversals or continuations are most likely to occur.
All visual elements are configurable, including the maximum number of visible gaps per direction, mitigation method (close or wick) and an ATR based filter to ignore insignificant gaps in low volatility environments.
🔹 Features
🔸 Automated Fair Value Gap Detection
The script detects both bullish and bearish FVGs based on classic three candle logic:
Bullish FVG: current low is strictly above the high from two bars ago
Bearish FVG: current high is strictly below the low from two bars ago
🔸 ATR Based Gap Filter
To avoid clutter and low quality signals, the script can ignore very small gaps using an ATR based filter.
🔸Per Gap State Machine and Lifecycle
Each gap is tracked with an internal status:
Fresh: gap has just formed and has not been tested
Testing: price is currently trading inside the gap
Tested: gap was tested and left, waiting for a potential new test
Rejected: price entered the gap and then rejected away from it
Filled: gap is considered fully mitigated and no longer active
This state machine allows the script to distinguish between simple touches, multiple tests and meaningful reversals, and to trigger different alerts accordingly.
🔸 Visual Ranking of Gaps by Metrics
For each active gap, three additional horizontal rank bars are drawn on top of the gap area:
Rank 1 (Vel): maximum entry velocity inside the gap
Rank 2 (Vol): relative test volume compared to average volume
Rank 3 (Dpt): remaining safety of the gap based on maximum penetration depth
These rank bars extend horizontally from the creation bar, and their length is a visual score between 0 and 1, scaled to the age of the gap. Longer bars represent stronger or more favorable conditions.
🔸Signals and Rejection Markers
When a gap shows signs of rejection (price enters the gap and then closes away from it with sufficient activity), the script can print a signal label at the reaction point. These markers summarize the internal metrics of the gap using a tooltip:
-Velocity percentage
-Volume percentage
-Safety score
-Number of tests
🔸 Flexible Mitigation Logic (Close or Wick)
You can choose how mitigation is defined via the Mitigation Method input:
Close: the gap is considered filled only when the closing price crosses the gap boundary
Wick: a full fill is detected as soon as any wick crosses the gap boundary
🔸 Alert Conditions
-New FVG formed
-Price entering a gap (testing)
-Gap fully filled and invalidated
-Rejection signal generated
🔹Calculations
This section summarizes the main calculations used under the hood. Only the core logic is covered.
1. ATR Filter and Gap Size
The script uses a configurable ATR length to filter out small gaps. First the ATR is computed:
float atrVal = ta.atr(atrLength)
Gap size for both directions is then measured:
float gapSizeBull = low - high
float gapSizeBear = low - high
If useAtrFilter is enabled, gaps smaller than atrVal are ignored. This ties the minimum gap size to the current volatility regime.
2. Fair Value Gap Detection
The basic FVG conditions use a three bar structure:
bool fvgBull = low > high
bool fvgBear = high < low
For bullish gaps the script stores:
-top as low of the current bar
-bottom as high
For bearish gaps:
-top as high of the current bar
-bottom as low
This defines the price range that is considered the imbalance area.
3. Depth and Safety Score
Depth measures how far price has penetrated into the gap since its creation. For each bar, the script computes a currentDepth and updates the maximum depth:
float currentDepth = 0.0
if g.isBullish
if l < g.top
currentDepth := g.top - l
else
if h > g.bottom
currentDepth := h - g.bottom
if currentDepth > g.maxDepth
g.maxDepth := currentDepth
The safety score expresses how much of the gap remains intact:
float depthRatio = g.maxDepth / gapSize
float safetyScore = math.max(0.0, 1.0 - depthRatio)
safetyScore near 1: gap is mostly untouched
safetyScore near 0: gap is mostly or fully filled
4. Velocity Metric
Velocity captures how aggressively price moves inside the gap. It is based on the body to range ratio of each bar that trades within the gap and rewards bars that move in the same direction as the gap:
float barRange = h - l
float bodyRatio = math.abs(close - open) / barRange
float directionBonus = 0.0
if g.isBullish and close > open
directionBonus := 0.2
else if not g.isBullish and close < open
directionBonus := 0.2
float currentVelocity = math.min(bodyRatio + directionBonus, 1.0)
The gap keeps track of the strongest observed value:
if currentVelocity > g.maxVelocity
g.maxVelocity := currentVelocity
This maximum is later used as velScore when building the velocity rank bar.
5. Volume Accumulation and Volume Score
While price is trading inside a gap, the script accumulates the traded volume:
if isInside
g.testVolume += volume
It also keeps track of the number of tests and the volume at the start of the first test:
if g.status == "Fresh"
g.status := "Testing"
g.testCount := 1
g.testStartVolume := volume
An average volume is computed using a 20 period SMA:
float volAvg = ta.sma(volume, 20)
The expected volume is approximated as:
float expectedVol = volAvg * math.max(1, (bar_index - g.index) / 2)
The volume score is then:
float volScore = math.min(g.testVolume / expectedVol, 1.0)
This produces a normalized 0 to 1 metric that shows whether the gap has attracted more or less volume than expected over its lifetime.
6. Rank Bar Scaling
All three scores are projected visually along the time axis as horizontal bars. The script uses the age of the gap in bars as the maximum width:
float maxWidth = math.max(bar_index - g.index, 1)
Then each metric is mapped to a bar length:
int len1 = int(math.max(1, maxWidth * velScore))
g.rankBox1.set_right(g.index + len1)
int len2 = int(math.max(1, maxWidth * volScore))
g.rankBox2.set_right(g.index + len2)
int len3 = int(math.max(1, maxWidth * safetyScore))
g.rankBox3.set_right(g.index + len3)
This creates an intuitive visual representation where stronger metrics produce longer rank bars, making it easy to quickly compare the relative quality of multiple FVGs on the chart.
Fair Value Gap Finder [Find Better Trades]Fair Value Gap Finder (FVG) – Spot Institutional Imbalances
📈 Identify Key Market Imbalances
The Fair Value Gap Finder automatically detects price inefficiencies where aggressive buying or selling has created an imbalance in liquidity. These gaps, often left by institutional traders, can serve as key areas for price to revisit before continuing its trend.
🔍 How It Works:
Highlights bullish Fair Value Gaps (FVGs) in green, signaling potential support zones.
Highlights bearish Fair Value Gaps (FVGs) in red, signaling potential resistance zones.
Uses ATR-based filtering to eliminate small, insignificant gaps, focusing only on high-probability setups.
Alerts included! Get notified when a valid Fair Value Gap is detected.
📊 How to Trade Using FVGs:
✅ For Buy Trades: Wait for price to return to a bullish FVG and confirm support before entering long.
✅ For Sell Trades: Wait for price to revisit a bearish FVG and confirm resistance before entering short.
✅ Use with candlestick patterns, trend analysis, or volume for additional confirmation.
⚙️ Customizable Settings:
Adjust the ATR Multiplier to control how large a gap must be before triggering a signal.
Enable alerts to stay informed in real time when new FVGs appear.
💡 Why Use This Indicator?
Fair Value Gaps are widely used by professional traders to spot areas of liquidity, making them valuable for scalping, swing trading, and institutional-style trading.
🚀 Add it to your TradingView chart and start trading with precision!
Fair Value Gap (FVG) by AlgoMaxxFair Value Gap (FVG) by AlgoMaxx
Advanced Fair Value Gap (FVG) detector with dynamic support/resistance lines. This professional-grade tool helps traders identify and track important market inefficiencies through Fair Value Gaps.
Features:
• Auto-detection of bullish and bearish FVGs
• Dynamic dotted extension lines for latest FVGs
• Smart gap filtering system
• Color-coded visualization
• Customizable parameters
• Clean, optimized code
Key Functions:
• Detects imbalance zones between candlesticks
• Marks FVGs with color-coded boxes
• Extends dotted lines for active reference levels
• Automatically updates with new gap formations
• Tracks gap fills in real-time
Inputs:
• Lookback Period: Historical gaps to display
• Minimum Gap Size %: Filter for gap significance
• Bullish/Bearish Colors: Visual customization
• Show Filled Gaps: Toggle filled gap visibility
Practical Applications:
1. Support/Resistance Levels
2. Mean Reversion Trading
3. Trend Continuation Setups
4. Market Structure Analysis
5. Price Action Trading
Usage Tips:
• Higher timeframes (1H+) provide more reliable signals
• Multiple FVGs in one zone indicate stronger levels
• Use in conjunction with other technical tools
• Monitor price reactions at FVG levels
• Consider gaps as zones rather than exact prices
Note: This is a premium-grade indicator designed for serious traders. Works best on higher timeframes where price inefficiencies are more significant.
═══════════════════
By Algomaxx
Version: 1.0
═══════════════════
Disclaimer:
This indicator is for informational purposes only. Trade at your own risk and always use proper risk management.
#FVG #technical #trading #algomaxx #premium
Fair Value Gap [LuxAlgo]Fair value gaps (FVG) highlight imbalances areas between market participants and have become popular amongst technical analysts. The following script aims to display fair value gaps alongside the percentage of filled gaps and the average duration (in bars) before gaps are filled.
Users can be alerted when an FVG is filled using the alerts built into this script.
🔶 USAGE
In practice, FVG's highlight areas of support (bullish FVG) and resistances (bearish FVG). Once a gap is filled, suggesting the end of the imbalance, we can expect the price to reverse.
This approach is more contrarian in nature, users wishing to use a more trend-following approach can use the identification of FVG as direct signals, going long with the identification of a bullish FVG, and short with a bearish FVG.
🔹 Mitigation
By default, the script highlights the areas of only unmitigated FVG's. Users can however highlight the mitigation level of mitigated FVG's, that is the lower extremity of bullish FVG's and the upper extremity of bearish FVG's.
The user can track the evolution of a mitigated FVG's using the "Dynamic" setting.
🔹 Threshold
The gap height can be used to determine the degree of imbalance between buying and selling market participants. Users can filter fair value gaps based on the gap height using the "Threshold %" setting. Using the "Auto" will make use of an automatic threshold, only keeping more volatile FVG's.
🔶 DETAILS
We use the following rules for detecting FVG's in this script:
Bullish FVG
low > high(t-2)
close(t-1) > high(t-2)
(low - high(t-2)) / high(t-2) > threshold
Upper Bullish FVG = low
Lower Bullish FVG = high(t-2)
Bearish FVG
high < low(t-2)
close(t-1) < low(t-2)
(low(t-2) - high) / high < -threshold
Upper Bearish FVG = low(t-2)
Lower Bearish FVG = high
🔶 SETTINGS
Threshold %: Threshold percentage used to filter our FVG's based on their height.
Auto Threshold: Use the cumulative mean of relative FVG heights as threshold.
Unmitigatted Levels: Extent the mitigation level of the number of unmitigated FVG's set by the user.
Mitigation Levels: Show the mitigation levels of mitigated FVG's.
Timeframe : Timeframe of the price data used to detect FVG's.
Fair Value Gap (FVG) Detector Fair Value Gap (FVG) is an imbalance in price action that occurs when there is a strong displacement (big movement) in the market, leaving a gap between wicks. This gap represents an area where price moved too quickly, and liquidity was not fully filled.
Traders use FVGs as potential areas where price might retrace and react before continuing in the original direction.
Fair Value Gap Absorption Indicator [LuxAlgo]The Fair Value Gap Absorption Indicator aims to detect fair value gap imbalances and tracks the mitigation status of the detected fair value gap by highlighting the mitigation level till a new fair value gap is detected.
The Fair Value Gap (FVG) is a widely utilized tool among price action traders to detect market inefficiencies or imbalances. These imbalances arise when buying or selling pressure is significant, resulting in a large upward or downward move, leaving behind an imbalance in the market.
🔶 USAGE
A fair value gap appears in a triple-candle pattern when there is a large candle whose previous candle’s high and subsequent candle’s low do not fully overlap the large candle. The space between these wicks is known as the fair value gap.
Price can come back to these imbalance areas and mitigate them, however, this is sometimes a process involving multiple bars, the displayed imbalances by the indicator allow tracking the current mitigation level of a displayed imbalance.
Fair value gaps can become a magnet for the price before continuing in the same direction. Traders commonly wait for the price to revert toward the fair value gap to clear out the imbalance before continuing to move toward the prevailing trend.
🔶 SETTINGS
🔹Fair Value Gaps
Fair Value Gap Width Filter: defines the filtering multiplier, please refer to the tooltip of the input option for further details.
Bullish, Imbalance and Mitigation: color customization option.
Bearish, Imbalance and Mitigation: color customization option.
Display Percentage of Mitigation: Display the percentage of the mitigation areas.
Historical Fair Value Gaps: toggles the visibility of the historical fair value gaps.
🔶 LIMITATIONS
Please note that filtering cannot be applied for the first 144 (atr fixed-length) candles since the atr value won't be present that is used for filtering.
🔶 RELATED SCRIPTS
Fair-Value-Gap
HTF-Fair-Value-Gap
Liquidity-Voids-FVG
Fair Value Gap - FVG - HistogramThis indicator uses a histogram to represent "fair value gaps" ("FVG"). FVG is a popular pattern among modern traders.
This document describes the purpose of the script and discusses the conceptual meaning of "fair value," as well as the connotations attached to it.
█🚀 Based on the previous script - improved clarity
This indicator is a modified version of the "Three Bar Gap (Simple Price Action - with 1 line plot)" indicator, which is also available as open source and can be applied to a chart as a complementary tool along with this indicator.
Differences:
The previous version introduced a "Threshold filter" to reduce the number of lines plotted on charts. This filter introduced two additional parameters for users to consider (ATR length and multiplier). These parameters made the indicator more complicated than intended.
To address this issue of having too many lines in the former version, I proposed a spin-off on this version: It's to consider plotting the magnitude of the FVGs on a histogram instead of using lines on a price chart. In my opinion, a histogram is more suitable for decision-making because it lays out data points side-by-side as bins, which makes comparisons much clearer.
Minor FVGs are expected to have smaller bins compared to their neighboring bins, and in extreme cases, the bins will become seemingly invisible due to the auto-adjusted scale of the y-axis. Therefore, there is no need to filter out any data, and all FVGs can be included in this spin-off version.
█🚀 Candlestick patterns - revisited
This script calculates the displacement of highs and lows over three consecutive bars.
A) Down move: When the high of the recent-confirmed bar is lower than the low of the previous-previous candle.
B) Up move: When the low of the recently-confirmed bar is higher than the high of the previous-previous candle.
█🚀 Parameters
Core Functionality
The purpose of this indicator is to generate bins representing the magnitude of FVGs in the form of a histogram to facilitate the visualization of price movements.
The act of "finding FVGs" does not require any inputs, but users can still customize the colors of the bins to indicate the direction of movement.
Auxiliary functionality: “Key level finder” by searching for large FVGs
The following inputs are optional, in fact, the entire feature can be toggled on/off.
In this example, setting the lookback at 20 means the script will generate a signal if the current histogram bin is taller than all previous bins over the past 20 bars.
█🚀 Applications
Tall histogram bins = key levels .
Traders should observe key levels for entry or exit opportunities.
It is important to note that this indicator was designed for standard time-based charts.
On a separate note, FVGs will not appear in Renko charts with fixed-size bricks. This is because the bricks align with their neighboring bricks. When the bricks are fixed, any displacement between highs and lows within less than or equal to three bars will be zero.
The concept of a "gap" is used to illustrate that price follows a jump-diffusion process, and time intervals can be assigned arbitrarily on the x-axis without needing fixed intervals. This idea was briefly discussed in the previous script's write-up.
█🚀 FAQ: Does it repaint?
No. And please continue reading.
Bins are plotted with a one-bar delay. It only takes one bar for the FVG to become confirmed. Lag is beneficial because it clarifies the need for traders to wait for the bar to close and for the signals to become confirmed before entering or exiting a trade. Experienced traders know that prices tend to retrace, so there is no need to chase. An added bar of delay proves to be useful.
█🚀 Opinion: The term “fair value” can be misleading
Those who come from traditional finance may find the term "fair value gap" somewhat insulting. When encountering the phrase, it can feel like a group of aliens from "Planet Technical Analysis" have intrusively landed on your planet and assertively redefined what "fair value" is supposed to mean.
So, what does "fair value" mean in the realm of technical analysis?
In the world of corporate finance, "fair value" is a subjective estimate of what buyers and sellers are hypothetically willing to pay or accept. Buy-side and sell-side analysts use their own methodologies to determine what constitutes "fair value". These approaches may be based on income, asset, or market comparables. Regardless of the approach used, subjectivity is inherent, and results depend on fundamental data provided by the numbers on financial statements. Valuations are unrelated to candlestick patterns .
When dealing with financial statements, finance professionals who are non-market-participants, such as those working in group reporting practices for reporting issuers, or those hired as external auditors, as required by regulators, may also question what constitutes "fair value". The main concerns always revolve around the assumptions used in valuation models; these are inputs that ultimately require management's judgment, and if not critically questioned, valuations as reported in the statements could end up becoming materially bogus. Both IFRS and U.S. GAAP define "fair value" with the same intended meaning in terms of definitions. We will not delve into the details here. The main point is that "fair value" from a financial reporting perspective has nothing to do with candlesticks .
If a price is already quoted in an actively traded market, you can refer to it to obtain what is known as "mark-to-market". This involves simply referring to the bid or ask price on the reporting date, and you're done - there's no need to read candlesticks !
"Fair value" is a neutral term used by finance professionals in all domains. It is not meant to imply that something is actually "fair." Paying the "fair value" for an asset can still result in overpaying or underpaying for what the asset is worth, depending on different model assumptions. The point is, candlesticks are irrelevant to the analysis of what is considered "fair value" in the realm of traditional finance.
That being said, there is no definitive answer as to why people refer to this pattern as a "fair value gap". It's like one of those oddball interview questions asking you to explain why tennis balls are fuzzy. Whatever answer you give, it's important to note that the subject itself is trivial.
Emphasis of matter on why "fair value" can be misleading
The previous paragraphs were not intended to attack ideas from the realm of technical analysis, nor to assert the true meaning, or lack of meaning, of the term "fair value". Words are constantly evolving. If the term "fair value gap" becomes more widely used to describe the displacement of highs and lows over three bars, then let's call it a "fair value gap".
To be clear, I argue that the term "fair value gap" should not be given a positive connotation. Traders should interpret the word "fair" neutrally. Although these signals occur frequently, if you trade every time there is a signal, you will overtrade and incur astronomical transaction costs over the long run, which can lead to losses.
█🚀 Conclusion:
In the end, what matters is how you apply FVG to trading. As mentioned in the "Applications" section above, traders should look for large FVGs - indicated by tall histogram bins - to identify key levels.
Fair Value Gap [MyTradingCoder]Introducing the "Fair Value Gap" indicator, a powerful tool designed to identify and visualize areas of potential market gaps where leftover orders may reside. This indicator utilizes price action analysis, specifically focusing on fair value gaps that occur between the current candle and the candle two bars prior.
The Fair Value Gap indicator draws customizable zones on the chart, representing bullish or bearish areas with distinct green or red colors. These zones highlight market gaps where price action has left a void, indicating the possibility of significant order activity in that region.
Key Features:
Liquidity Zone: Utilize the Fair Value Gap zones as areas of liquidity, offering potential entry points for trades.
Support/Resistance Indicator: Configure the indicator to extend beyond the initial breakout or gap fill, allowing it to act as a support/resistance zone indicator.
The Fair Value Gap indicator has several adjustable settings to customize its behavior according to your trading preferences. These settings include:
Invalidation Outcome: Choose how the fair value gap zone is treated when it becomes invalidated. Options include:
-Stop Updating: Maintain the gap zone in its current state without further updates.
-Delete: Completely remove the fair value gap from the screen.
Invalidation Method: Determine the logic that invalidates the fair value gap. Options include:
-Gap Fill: Visually shrink the zone as price action closes the gap until it is completely filled, at which point it gets deleted entirely.
-Number Of Breakouts: Invalidate the gap after a certain number of breaks or flips over the zone's border. Configure the allowed number of breakouts with the "Breakouts Until Invalidation" input.
-Age Of Gap: Invalidate the gap after a specified number of bars have passed since its creation. Set the threshold with the "Bars Until Invalidation" input.
Color Customization: Customize the appearance of the fair value gap zones with various color inputs, including bullish and bearish border colors, middle line color (shared for both bullish and bearish gaps), bullish and bearish background colors.
Line Width: Adjust the width of the border lines and the center line within the fair value gap zone for better visual clarity.
Please note that the Fair Value Gap indicator is a valuable tool but should be used alongside other technical analysis methods to make well-informed trading decisions. It does not guarantee profitable trades but aims to provide insights into potential areas of interest.
Discover opportunities within market gaps and leverage the power of leftover orders with the Fair Value Gap indicator—an indispensable asset in your trading toolkit.
Fair Value Gaps (FVG) [UAlgo]A fair value gap is especially popular among price action traders and occurs when there are inefficiencies or imbalances in the market, or when the buying and selling are not equal. Fair value gaps can become a magnet for the price before continuing in the same direction.
🔶 Key Features :
Fair Value Gap Identification:
Bullish fair value gaps occur when the current market price exceeds the previous high. The indicator identifies bullish gaps by comparing the low of the current candle with the high of the candle two candles ago . If the low of the current candle is higher than the high two candles ago and the closing price of the previous candle is also higher than the high two candles ago, a bullish fair value gap is detected.
Bearish fair value gaps occur when the current market price falls below the previous low. The indicator identifies bearish gaps by comparing the high of the current candle with the low of the candle two candles ago. If the high of the current candle is lower than the low two periods ago and the closing price of the previous candle is also lower than the low two candles ago, a bearish fair value gap is detected.
Fair Value Gap Filter :
ATR measures market volatility by analyzing the range of price movements over a specified period. It provides insights into the average price range that a security experiences within a given timeframe. After the ATR is calculated, a Simple Moving Average (SMA) is computed for the ATR values. This moving average smoothens out the ATR data, providing a clearer indication of the average volatility levels over time.
When the filter is active, fair value gaps are identified only if they occur during periods of relatively higher volatility, as indicated by the ATR being greater than the SMA. This helps in refining and obtaining the detection of stronger fair value gaps
An example with FVG filtering off:
An example with FVG filtering on:
Customizable Settings: Users have the flexibility to customize various parameters to suit their trading preferences. They can adjust settings such as the number of fair value gaps displayed, mitigation method (either based on closing prices or wicks), and apply filters based on Average True Range (ATR) to refine gap detection.
🔶 Disclaimer :
Use with Caution: Trading involves significant risk, and this indicator should be used with caution. While it can help identify potential trading opportunities, it does not guarantee profits and may sometimes provide false signals.
Not Financial Advice: The information provided by the Fair Value Gaps indicator is for educational and informational purposes only and should not be considered as financial advice. Traders should conduct their own research and consult with financial professionals before making any trading decisions.
Past Performance: Past performance is not indicative of future results. Historical price movements analyzed by the indicator may not accurately predict future market behavior.
Fair Value Gap [Tradeuminati]Fair Value Gap
Fair Value Gap is a clean and rule-based Fair Value Gap indicator for TradingView, designed to display only valid and confirmed Fair Value Gaps (FVGs) and Inverted Fair Value Gaps (iFVGs).
The indicator is built on a strict 3-candle FVG definition and operates exclusively on candle close, ensuring no repainting and no premature signals.
🔹 Key Features
Valid Fair Value Gaps (FVG)
- Detects bullish and bearish Fair Value Gaps using a precise 3-candle structure
- FVGs are only plotted after the confirming candle has closed
- A Fair Value Gap remains visible only as long as it is valid
- Once price closes beyond the FVG, it is removed or converted
Inverted Fair Value Gaps (iFVG)
- When a valid FVG is invalidated by a candle close, it can be converted into an iFVG
- iFVGs retain the original price range and structure
- Only valid iFVGs are displayed
- As soon as price closes through an iFVG, it is automatically removed
Clean & Controlled Visualization
- Only the last N active FVGs are displayed (bullish + bearish combined)
- Only the last N valid iFVGs are shown
- Boxes automatically extend to the current price + configurable bars
- Labels are dynamically positioned at the right edge of each zone
🔹 Technical Notes
- No repainting
- No intrabar signals
- Close-based validation only
- Works on all markets and timeframes
- Lightweight and performance-friendly
⚠️ Disclaimer
This indicator is for technical analysis purposes only and does not constitute trading or investment advice.
Fair Value Gap Screener | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Fair Value Gap Screener! This screener can provide information about the latest Fair Value Gaps in up to 5 tickers. You can also customize the algorithm that finds the Fair Value Gaps and the styling of the screener.
Features of the new Fair Value Gap (FVG) Screener :
Find Latest Fair Value Gaps Accross 5 Tickers
Shows Their Information Of :
Latest Status
Number Of Retests
Consumption Percent
Bullish & Bearish Volume
Customizable Algoritm / Styling
📌 HOW DOES IT WORK ?
A Fair Value Gap generally occur when there is an imbalance in the market. They can be detected by specific formations within the chart. This screener then finds Fair Value Gaps accross 5 different tickers, and shows the latest information about them.
Status ->
Far -> The current price is far away from the FVG.
Approaching ⬆️/⬇️ -> The current price is approaching the FVG, and the direction it's approaching from.
Inside -> The price is currently inside the FVG.
Retests -> Retest means the price tried to invalidate the FVG, but failed to do so. Here you can see how many times the price retested the FVG.
Consumed -> FVGs get consumed when a Close / Wick enters the FVG zone. For example, if the price hits the middle of the FVG zone, the zone is considered 50% consumed.
Bullish / Bearish Volume -> Bullish & Bearish volume of a FVG is calculated by analyzing the bars that formed it. For example in a bullish FVG, the bullish volume is the total volume of the first 2 bars forming the FVG, and the bearish volume is the volume of the 3rd bar that forms it.
🚩UNIQUENESS
This screener can detect latest Fair Value Gaps and give information about them for up to 5 tickers. This saves the user time by showing them all in a dashboard at the same time. The screener also uniquely shows information about the number of retests and the consumed percent of the FVG, as well as it's bullish & bearish volume. We believe that this extra information will help you spot reliable FVGs easier.
⚙️SETTINGS
1. Tickers
You can set up to 5 tickers for the screener to scan Fair Value Gaps here. You can also enable / disable them and set their individual timeframes.
2. General Configuration
Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
Fair Value Gap & Gap Profile [BigBeluga]This indicator is designed to help traders identify and utilize fair value gaps on price charts and analyze volume at these points. These gaps, formed by significant price movements, can act as key support and resistance levels. The indicator enhances trading strategies by visually representing these gaps, making it easier for traders to spot potential entry and exit points.
⦿ What Is A Fair Value Gap?
Before diving into the practical use of the Fair Value Gap in trading, it's crucial to have a clear understanding of what it is and how to identify it on your charts. The Fair Value Gap, or FVG , is a widely utilized tool among price action traders to detect market inefficiencies or imbalances. Sometimes you will even see them labeled as inefficiencies by other traders. These imbalances arise when buying or selling pressure is significant, resulting in a large upward or downward move, leaving behind an imbalance in the market.
The idea behind FVGs is that the market will eventually come back to these inefficiencies in the market before continuing in the same direction as the initial impulsive move. FVGs are important since traders can achieve an edge in the market. Price action traders can also use these imbalances as entry or exit points in the market.
By visually representing gaps and their profile, the Fair Value Gap (FVG) & Gap Profile indicator provides a historical overview of gaps within a specified lookback period, showing the distribution and density of gaps across different price levels. This insight helps traders identify zones where the price tends to move more fluidly, often encountering less resistance. High points on the Gap Profile indicate areas where gaps have occurred frequently in the past, which could serve as potential breakout or breakdown zones.
⦿ Key Features:
● Gap Detection and Visualization:
- Identifies Bullish and Bearish Gaps: Highlights gaps where the price moved significantly up or down along with a volume. Intensivity of color show strength of FVG by volume
- Filter for Significant Gaps: Allows users to filter out insignificant gaps, ensuring only relevant gaps are displayed.
● Customizable Display Options:
- Shows Filled Gaps: Option to display gaps that have been filled, aiding in the analysis of historical price movements.
- Displays Filled Gap Levels: Highlights the levels of filled gaps.
● Gap Profile:
Gap Profile Insight: The Gap Profile feature shows the distribution of gaps over a specified lookback period. High points on the FVG Profile indicate areas with a significant number of gaps in the past. These high points are signs of low resistance for price movement. Consequently, at these points, the price tends to move more easily without encountering strong resistance. Traders can use this information to identify potential breakout or breakdown zones where price action is likely to be more fluid.
● Grab Liquidity Detection:
- Collect liquidity Signals: Plots markers on the chart where price interacts with gap levels, providing potential trade signals based on liquidity.
⦿ How Traders Can Use This Indicator:
- Plan Trades: Use gaps as potential entry and exit points, based on whether the price is approaching, filling, or moving away from a gap.
- Analyze Market Trends: Understand historical price movements by analyzing filled gaps and their impact on current price action.
- Analyze Gap Profile: Identify zones where the price tends to move more fluidly, often encountering less resistance. High points on the Gap Profile indicate areas where gaps have occurred frequently in the past, which could serve as potential breakout or breakdown zones.
- Price imbalance: market will eventually come back to these inefficiencies and fill them. inefficiencies or imbalances in the market usually act as a magnet for price.
By incorporating the Fair Value Gap & Gap Profile indicator into their trading strategy, traders can gain a clearer understanding of market dynamics and make more informed trading decisions.
Fair Value Gap (FVG) UnderlayBy analyzing the size and characteristics of candlestick patterns, the Fair Value Gap indicator helps traders spot potential opportunities where the price of a currency or financial asset deviates from its fair value. The FVG is represented as a percentage and displayed as columns in an underlay on the chart.
Calculation and Interpretation:
The calculation of the FVG involves evaluating the body-to-wick ratio of a candlestick. This ratio compares the size of the body (the difference between the open and close prices) to the length of the wicks (the high and low prices). A high body-to-wick ratio indicates a significant price move within the candlestick, potentially signaling a strong market sentiment. The FVG indicator compares the size of the current candlestick with the previous candlesticks over a specified lookback period, typically the last 20 to 40 candlesticks. If the current candlestick meets the criteria for a fair value gap, it is classified as either a Bearish FVG or Bullish FVG, depending on the direction of the price movement.
Interpreting the FVG is relatively straightforward. When a Bearish FVG is detected, it suggests that the price is currently lower than its fair value, indicating a potential upward price movement in the future. This could be an opportunity to consider long positions or buying opportunities. On the other hand, when a Bullish FVG is identified, it implies that the price is higher than its fair value, signaling a possible downward price correction. Traders may consider short-selling or taking profits on long positions in such scenarios.
Coloration:
The coloration of the Fair Value Gap (FVG) indicator plays a crucial role in enhancing its visual representation and aiding interpretation. When a Bearish FVG is identified, the indicator utilizes the color scheme of lime green. This color signifies the potential for an upward price movement as the current price is considered lower than its fair value. On the other hand, a Bullish FVG is represented by the vibrant color of fuchsia, indicating a potential downward price correction as the price exceeds its fair value. The coloration serves as a visual cue, making it easier for traders to quickly identify and differentiate between different types of fair value gaps on the chart. Additionally, the barcolor is aligned with the respective FVG color, providing a comprehensive view of price inefficiencies and aiding traders in their decision-making process.
Potential Applications/Strategies:
The FVG indicator can be applied in various trading strategies and situations. One possible application is in price reversion strategies. Traders can use the FVG to identify overbought or oversold conditions in the market. When a Bullish FVG occurs, it may indicate an opportunity to consider short-selling or taking profits on long positions. Similarly, a Bearish FVG can suggest a potential buying opportunity, expecting the price to revert back to its fair value.
Another application is in confirming existing trends. The FVG can act as a confirmation tool for trends identified by other indicators or analysis techniques. When a Bullish FVG aligns with an uptrend, it may strengthen the bullish bias and provide more confidence in the upward momentum. Conversely, a Bearish FVG in conjunction with a downtrend may reinforce the bearish sentiment and support the idea of further downside potential.
Parameters:
Adjusting the parameters of the FVG indicator can be beneficial based on the trader's trading style and time frame. The body-to-wick ratio threshold and lookback period can be modified to capture different types of fair value gaps and adapt to different market conditions. Shorter lookback periods may help identify more recent FVGs, which could be suitable for short-term traders, while longer periods may capture larger price inefficiencies and cater to longer-term traders.
Limitations:
However, it's important to note that the FVG indicator, like any technical analysis tool, has its limitations. It relies on historical price patterns and may not always accurately predict future price movements. The interpretation of FVGs requires careful analysis and should be used in conjunction with other indicators, technical analysis tools, and fundamental factors to make well-informed trading decisions. Traders should also exercise proper risk management and consider the overall market context when using the FVG indicator.
In conclusion, the Fair Value Gap (FVG) indicator provides traders with valuable insights into price inefficiencies and deviations from fair value. By identifying Bearish and Bullish FVGs, traders can potentially uncover trading opportunities and make more informed decisions. However, it is crucial to combine the FVG indicator with other analysis tools, conduct thorough analysis, and exercise proper risk management to achieve consistent trading success.
Fair Value Gap█ OVERVIEW
This indicator displays the Fair Value Gap of the current timeframe and an additional higher timeframe. For each FVG the gaps act as targets creating bullish and bearish gaps that are often filled.
█ FEATURES
MTF Options
MidPoint FIll
Delete Old On Fill
Label FVG Timeframe
MTF Options
Enabling the MTF Options will allow the user to use the "MTF Timeframe" setting to choose what HTF Fair Value Gap to display
MidPoint FIll
A line plot at the Half way point will be included in the Fair Value Gap, this will be used to delete the gap when reached instead of a full fill.
Delete Old On Fill
Deletes historical Fair Value Gaps when filled.
Label FVG Timeframe
Labels Every Fair Value gap with there relevant timeframe to make it easier to determine which gap is being filled.
█ HOW TO USE IT
The indicator is quite straight forward in its application, providing users with targets that are often filled as they are seen as market imbalance.
Just applying it to your chart will provide the existing Fair Value Gaps. MTF Confluence is helpful in seeing what is happening on the macro perspective.
█ SUGGESTION
My suggestion for clarity is to use a different color to some degree between the MTF and Current TF as Opposed to text, keeps the chart clear.
█ LIMITATIONS OF PINE (Please read)
I see many users going on different indicators with MTF in mind and trying to use it for LTF data e.g. 1hour chart, and selecting 5min in chart settings.
This is not recommended by the team themselves and should be noted for use always use HTF: www.tradingview.com
To understand how to use fair value gaps I recommend learning about the subject some more, searching online will provide you resources. The internet is your friend when learning. All the best.
Fair Value Gap [UkutaLabs]█ OVERVIEW
Fair Value Gaps are price jumps caused by the imbalance buying and selling pressures in trading and are most commonly used amongst price action traders. Fair Value Gaps are formed via a three-candle sequence in which a large candle’s neighbouring candles’ upper and lower wicks do not fully overlap the large candle.
The Fair Value Gaps Indicator also supports Multi Time Frame Plotting, allowing you to plot the Fair Value Gaps from higher time frames onto lower time frame charts.
The Fair Value Gaps Indicator is a powerful trading toolkit that provides users with more information than they would typically have available to them by allowing them to configure several charts worth of information onto one single chart.
█ USAGE
The script automatically identifies imbalances between buying and selling pressure in the market in real time, offering traders valuable insight into current market sentiment. These gaps are considered to be levels where the supply and demand of a commodity are imbalanced, and the price tends to return to fill these gaps (But are not guaranteed to).
The Fair Value Gaps Indicator also allows gaps from higher time frames to be drawn on lower time frame charts, providing traders with more information than they would typically have access to to further simplify the decision making process.
█ SETTINGS
Configuration
• Show Labels: Determines whether labels that identify which time frame a FVG is calculated from.
• Max FVG Display: Determines the limit to the number of FVGs that can be drawn from all time frames. Set this value to 0 to remove this limit.
Current Time Frame
• Display: Determines whether or not FVGs from the current time frame will be drawn on the chart.
• Bullish Color: Determines the color of Bullish FVGs calculated from the current time frame.
• Bearish Color: Determines the color of Bearish FVGs calculated from the current time frame.
5 Minute (Higher Time Frame)
• Display: Determines whether or not FVGs from the 5 minute time frame will be drawn on the chart.
• Bullish Color: Determines the color of Bullish FVGs calculated from the 5 minute time frame.
• Bearish Color: Determines the color of Bearish FVGs calculated from the 5 minute time frame.
15 Minute (Higher Time Frame)
• Display: Determines whether or not FVGs from the 15 minute time frame will be drawn on the chart.
• Bullish Color: Determines the color of Bullish FVGs calculated from the 15 minute time frame.
• Bearish Color: Determines the color of Bearish FVGs calculated from the 15 minute time frame.
30 Minute (Higher Time Frame)
• Display: Determines whether or not FVGs from the 30 minute time frame will be drawn on the chart.
• Bullish Color: Determines the color of Bullish FVGs calculated from the 30 minute time frame.
• Bearish Color: Determines the color of Bearish FVGs calculated from the 30 minute time frame.
60 Minute (Higher Time Frame)
• Display: Determines whether or not FVGs from the 60 minute time frame will be drawn on the chart.
• Bullish Color: Determines the color of Bullish FVGs calculated from the 60 minute time frame.
• Bearish Color: Determines the color of Bearish FVGs calculated from the 60 minute time frame.
240 Minute (Higher Time Frame)
• Display: Determines whether or not FVGs from the 240 minute time frame will be drawn on the chart.
• Bullish Color: Determines the color of Bullish FVGs calculated from the 240 minute time frame.
• Bearish Color: Determines the color of Bearish FVGs calculated from the 240 minute time frame.
Daily (Higher Time Frame)
• Display: Determines whether or not FVGs from the daily time frame will be drawn on the chart.
• Bullish Color: Determines the color of Bullish FVGs calculated from the daily time frame.
• Bearish Color: Determines the color of Bearish FVGs calculated from the daily time frame.
Fair Value Gap (FVG) Oscillator [UAlgo]The "Fair Value Gap (FVG) Oscillator " is designed to identify and visualize Fair Value Gaps (FVG) within a given lookback period on a trading chart. This indicator helps traders by highlighting areas where price gaps may signify potential trading opportunities, specifically bullish and bearish patterns. By leveraging volume and Average True Range (ATR) data, the FVG Oscillator aims to enhance the accuracy of pattern recognition and provide more reliable signals for trading decisions.
🔶 Identification of Fair Value Gap (FVG)
Fair Value Gaps (FVG) are specific price areas where gaps occur, and they are often considered significant in technical analysis. These gaps can indicate potential future price movements as the market may return to fill these gaps. This indicator identifies two types of FVGs:
Bullish FVG: Occurs when the current low price is higher than the high price two periods ago. This condition suggests a potential upward price movement.
Obtains with:
low > high
Bearish FVG: Occurs when the current high price is lower than the low price two periods ago. This condition suggests a potential downward price movement.
Obtains with:
high < low
The FVG Oscillator not only identifies these gaps but also verifies them using volume and ATR conditions to ensure more reliable trading signals.
🔶 Key Features
Lookback Period: Users can set the lookback period to determine how far back the indicator should search for FVG patterns.
ATR Multiplier: The ATR Multiplier is used to adjust the sensitivity of the ATR-based conditions for verifying FVG patterns.
Volume SMA Period: This setting determines the period for the Simple Moving Average (SMA) of the volume, which helps in identifying high volume conditions.
Why ATR and Volume are Used?
ATR (Average True Range) and volume are integrated into the Fair Value Gap (FVG) Oscillator to enhance the accuracy and reliability of the identified patterns. ATR measures market volatility, helping to filter out insignificant price gaps and focus on impactful ones, ensuring that the signals are relevant and strong. Volume, on the other hand, confirms the strength of price movements. High volume often indicates the sustainability of these movements, reducing the likelihood of false signals. Together, ATR and volume ensure that the detected FVGs are both significant and supported by market activity, providing more trustworthy trading signals.
Normalized Values: The FVG counts are normalized to enhance the visual representation and interpretation of the patterns on the chart.
Visual Customization and Plotting: Users can customize the colors for positive (bullish) and negative (bearish) areas, and choose whether to display these areas on the chart, also plots the bullish and bearish FVG counts, a zero line, and the net value of FVG counts. Additionally, it uses histograms to display the width of verified bullish and bearish patterns.
🔶 Disclaimer:
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Fair Value Gap Profiles [AlgoAlpha]🟠 OVERVIEW
This script draws and manages Fair Value Gap (FVG) zones by detecting unfilled gaps in price action and then augmenting them with intra-gap volume profiles from a lower timeframe. It is designed to help traders find potential areas where price may return to fill liquidity voids, and to provide extra detail about volume distribution inside each gap to assess strength and likely mitigation. The script automatically tracks each gap, updates its state over time, and can show which gaps are still unfilled or have been mitigated.
🟠 CONCEPTS
A Fair Value Gap is a zone between candles where no trades occurred, often seen as an inefficiency that price later revisits. The script checks each bar to see if a bullish (low above 2-bars-ago high) or bearish (high below 2-bars-ago low) gap has formed, and measures whether the gap’s size exceeds a threshold defined by a volatility-adjusted multiplier of past gap widths (to only detect significantly large gaps). Once a qualified gap is found, it gets recorded and visualized with a box that can stretch forward in time until filled. To add more context, a mini volume profile is built from a lower timeframe’s price and volume data, showing how volume is distributed inside the gap. The lowest-volume subzone is also highlighted using a sliding window scan method to visualise the true gap (area with least trading activity)
🟠 FEATURES
Visual gap boxes that appear automatically when bullish or bearish fair value gaps are detected on the chart.
Color-coded zones showing bullish gaps in one color and bearish gaps in another so you can easily see which side the gap favors.
Volume profile histograms plotted inside each gap using data from a lower timeframe, helping you see where volume concentrated inside the gap area.
Highlight of the lowest-volume subzone within each gap so you can spot areas price may target when filling the gap.
Dynamic extension of the gap boxes across the chart until price comes back and fills them, marking them as mitigated.
Customizable colors and transparency settings for gap boxes, profiles, and low-volume highlights to match your chart style.
Alerts that notify you when a new gap is created or when price fills an existing gap.
🟠 USAGE
This indicator helps you find and track unfilled price gaps that often act as magnets for price to revisit. You can use it to spot areas where liquidity may rest and plan entries or exits around these zones.
The colored gap boxes show you exactly where a fair value gap starts and ends, so you can anticipate potential pullbacks or continuations when price approaches them.
The intra-gap volume profile lets you gauge whether the gap was created on strong or thin participation, which can help judge how likely it is to be filled. The highlighted lowest-volume subzone shows where price might accelerate once inside the gap.
Traders often look for entries when price returns to a gap, aiming for a reaction or reversal in that area. You can also combine the mitigation alerts with your trade management to track when gaps have been closed and adjust your bias accordingly. Overall, the tool gives a clear visual reference for imbalance zones that can help structure trades around supply and demand dynamics.
Fair Value Gap Oscillator | Flux Charts💎 GENERAL OVERVIEW
Introducing the new Fair Value Gap Oscillator (FVG Oscillator) indicator! This unique indicator identifies and tracks Fair Value Gaps (FVGs) in price action, presenting them in an oscillator format to reveal market momentum based on FVG strength. It highlights bullish and bearish FVGs while enabling traders to adjust detection sensitivity and apply volume and ATR-based filters for more precise setups. For more information about the process, check the "📌 HOW DOES IT WORK" section.
Features of the new FVG Oscillator:
Fully Customizable FVG Detection
An Oscillator Approach To FVGs
Divergence Markers For Potential Reversals
Alerts For Divergence Labels
Customizable Styling
📌 HOW DOES IT WORK?
Fair Value Gaps are price gaps within bars that indicate inefficiencies, often filled as the market retraces. The FVG Oscillator scans historical bars to identify these gaps, then filters them based on ATR or volume. Each FVG is marked as bullish or bearish according to the trend direction that preceded its formation.
An oscillator is calculated using recent FVGs with this formula :
1. The Oscillator starts as 0.
2. When a new FVG Appears, it contributes (FVG Width / ATR) to the oscillator of the corresponding type.
3. Each confirmed bar, the oscillator is recalculated as OSC = OSC * (1 - Decay Coefficient)
The oscillator aggregates and decays past FVGs, allowing recent FVG activity to dominate the signal. This approach emphasizes current market momentum, with oscillations moving bullish or bearish based on FVG intensity. Divergences are marked where FVG oscillations suggest potential reversals. Bullish Divergence conditions are as follows :
1. The current candlestick low must be the lowest of last 25 bars.
2. Net Oscillator (Shown in gray line by default) must be > 0.
3. The current Bullish FVG Oscillator value should be no more than 0.1 below the highest value from the last 25 bars.
Traders can use divergence signals to get an idea of potential reversals, and use the Net FVG Oscillator as a trend following marker.
🚩 UNIQUENESS
The Fair Value Gap Oscillator stands out by converting FVG activity into an oscillator format, providing a momentum-based visualization of FVGs that reveals market sentiment dynamically. Unlike traditional indicators that statically mark FVG zones, the oscillator decays older FVGs over time, showing only the most recent, relevant activity. This approach allows for real-time insight into market conditions and potential reversals based on oscillating FVG strength, making it both intuitive and powerful for momentum trading.
Another unique feature is the combination of customizable ATR and volume filters, letting traders adapt the indicator to match their strategy and market type. You can also set-up alerts for bullish & bearish divergences.
⚙️ SETTINGS
1. General Configuration
Decay Coefficient -> The decay coefficient for oscillators. Increasing this setting will result in oscillators giving the weight to recent FVGs, while decreasing it will distribute the weight equally to the past and recent FVGs.
2. Fair Value Gaps
Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivies resulting in spotting bigger FVGs, and higher sensitivies resulting in spotting all sizes of FVGs.
3. Style
Divergence Labels On -> You can switch divergence labels to show up on the chart or the oscillator plot.
Fair Value Gap ChartThe Fair Value Gap chart is a new charting method that displays fair value gap imbalances as Japanese candlesticks, allowing traders to quickly see the evolution of historical market imbalances.
The script is additionally able to compute an exponential moving average using the imbalances as input.
🔶 USAGE
The Fair Value Gap chart allows us to quickly display historical fair value gap imbalances. This also allows for filtering out potential noisy variations, showing more compact trends.
Most like other charting methods, we can draw trendlines/patterns from the displayed results, this can be helpful to potentially predict future imbalances locations.
Users can display an exponential moving average computed from the detected fvg's imbalances. Imbalances above the ema can be indicative of an uptrend, while imbalances under the ema are indicative of a downtrend.
Note that due to pinescript limitations a maximum of 500 lines can be displayed, as such displaying the EMA prevent candle wicks from being displayed.
🔶 DETAILS
🔹 Candle Structure
The Fair Value Gap Chart is constructed by keeping a record of all detected fair value gaps on the chart. Each fvg is displayed as a candlestick, with the imbalance range representing the body of the candle, and the range of the imbalance interval being used for the wicks.
🔹 EMA Source Input
The exponential moving average uses the imbalance range to get its input source, the extremity of the range used depends on whether the fvg is bullish or bearish.
When the fvg is bullish, the maximum of the imbalance range is used as ema input, else the minimum of the fvg imbalance is used.
