FairValueGaps

FairValueGaps

The Fair Value Gaps (FVG) Indicator is a powerful technical analysis tool designed to identify and visualize significant price imbalances in the market. These gaps, created when price makes a strong directional move, represent areas where price has moved so quickly that no trading activity occurred, potentially indicating institutional interest and strong market momentum.

Key Features:

• Dual Gap Detection: Automatically identifies both Supply FVGs (bearish/selling opportunities) and Demand FVGs (bullish/buying opportunities)
• Visual Clarity: Displays FVGs as colored zones directly on your chart with customizable colors and opacity
• Mitigated Gap Tracking: Option to show which gaps have been filled by subsequent price action
• Extensive Customization: Adjust lookback periods, minimum gap size, display preferences, and more
• Performance Optimized: Efficiently analyzes hundreds of bars without slowing down your platform

How It Works:

The indicator scans price action to find three-candle patterns where:

• Supply FVG (Bearish): The high of the current candle is below the low of the candle two bars back, with a bearish middle candle
• Demand FVG (Bullish): The low of the current candle is above the high of the candle two bars back, with a bullish middle candle

These gaps in fair value represent areas where price discovery was incomplete, often providing high-probability support and resistance zones for your trading decisions.

Trading Applications:

• Use as dynamic support and resistance levels
• Identify potential reversal zones
• Filter trades in the direction of the larger trend
• Set precise entry and exit points
• Find high-probability price targets

Ideal For:

Whether you're a price action trader, trend follower, or reversal trader, the FVG Indicator provides valuable market structure insights across all timeframes and instruments. It's particularly effective in forex, indices, commodities, and cryptocurrency markets.

Enhance your technical analysis with clear visual identification of these critical market structure elements. The Fair Value Gaps Indicator gives you an edge by highlighting institutional footprints that most retail traders miss.