Fair Value Gap Levels
For those who are interested in Smart Money Concepts, this indicator could be your next game.
It identifies and visualizes Fair Value Gaps (FVGs) on price charts, providing traders with powerful market structure insights and potential reversal zones.
Fair Value Gaps represent rapid price movements where price "jumps" past certain levels without trading through them. These gaps often indicate institutional order flow and imbalances between buyers and sellers. There are two types of FVGs:
Bullish FVG: Forms when the low of the current bar is higher than the high of the bar from two periods ago
Bearish FVG: Forms when the high of the current bar is lower than the low of the bar from two periods ago
My indicator offers these key features:
- Visual FVG Representation: Green rectangles for bullish FVGs and red rectangles for bearish FVGs
- FVG Level Tracking: Monitors the key levels associated with each FVG type
- Creation Signals: Arrows indicate when new FVGs are formed
- Mitigation Detection: Automatically identifies when price returns to "fill" an FVG
- Visual Mitigation Alerts: Changes color of mitigated FVGs and displays signals when mitigation occurs
- ATR Filtering: Uses Average True Range to identify only significant FVGs based on volatility
- Customizable Display: Option to show or hide horizontal level lines
- Selectable number of FVG visualized on chart
The indicator provides both visual feedback on the chart and precise price levels with buffers for implementing structured trading strategies based on the concept of Fair Value Gaps
