FVG Price & Volume Graph [LuxAlgo]

22 Agu

The FVG Price & Volume Graph tool plot recently detected fair value gaps relative to the volume traded within their area during their formation. This allows us to effectively visualize significant fair value gaps caused by high liquidity.

The indicator also returns levels from the fair value gaps areas average with the highest associated volume.

Do note that the indicator can consider the chart's visible range when being computed, which will recalculate the indicator when the chart's visible range changes.

🔶 USAGE



Fair Value Gaps (FVG) are core price action concepts occurring when the disparity between supply and demand is significant. Price has a tendency to come back to those areas and mitigating them, that is filling them.

The provided tools allow for effective visualization of both FVG's area's height as well as the volume originating from their creation, which is defined by the total traded volume located within the FVG during its creation. FVG's with more associated volume are displayed to the rightmost of the chart.



Users can determine the amount of most recent FVG's to display from the "Display Amount" setting. Disabling the "Consider Mitigation" setting will return mitigated FVGs in the plot, which can be useful to know where most FVGs were located.



We can use the area average of the FVGs with the most associated volume as potential support/resistance levels. Users can extend more FVG's averages by increasing the "Highest Volume Averages" setting.

🔹Visualizing Volume/Price Relationships of FVG's



A linear regression is fit between FVG's areas average and their associated volume, with this linear regression helping us see where FVG's with specific volume might be located in the future based on existing FVG's.

Note that FVG's do not tend to exhibit linear relationships with their associated volume, the provided linear regression can give a general sense of tendency, but nothing necessarily accurate.

🔶 DETAILS

🔹Intrabar Data TF

Given a formation of three candles causing an FVG, the volume traded within that FVG area is obtained by looking at the lower timeframe intrabar candles located within the intermediary candle of the formation. The volume of the intrabar candles located within the FVG areas is added up to obtain the associated volume of the FVG.

Using a lower "Intrabar Data TF" allows obtaining more precise volume results, at the cost of computation time and data availability (if there is a high difference between the "Intrabar Data TF" and the chart TF then less FVG can have their associated volume calculated due to Tradingview limitations).

🔹Display

Users have access to multiple graphical settings affecting how the indicator is displayed.

The "Graph Resolution" setting determines the length of the X axis, with higher values returning more precise results on the location of FVGs over the X axis. Users can also control the number of labels displayed on the X-axis using the numerical input to the right of "Show X-Axis Labels".

Additionally, users can color FVG areas using a gradient relative to the size of the area, or the volume associated with the FVG.

🔶 SETTINGS

• Display Amount: Amount of most recent FVGs to display.
  
• Highest Volume Averages: Amount of FVG averages levels with the highest volume to display and extend.
  
• Consider Mitigation: Only display unmitigated FVGs.
  
• Filter FVGs Outside Visible Range: Only display FVGs areas that are located within the user chart visible range.
  
• Intrabar Data TF: Timeframe used to obtain intrabar data. Should be lower than the user chart timeframe.