Candelaa - Fair Value Gap (FVG)

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📝 Overview

A Fair Value Gap, is a three-candle pattern where an unfilled area exists between the high of the first candle and the low of the third candle. This Fair Value Gap represents a price imbalance and often serves as a level of support or resistance on the price chart.

• A Bullish FVG occurs when the high of the first candle is below the low of the third candle, creating a gap in price between them.
  
• A Bearish FVG happens when the low of the first candle is above the high of the third candle, also resulting in a price gap.
  

The indicator is designed to allow traders to precisely and accurately identify Fair Value Gaps (FVGs) across any chosen time frame. By automatically detecting these price imbalances, it highlights potential areas where price may retrace, providing valuable insights into market support and resistance levels. This capability enables traders to make informed decisions based on the presence of FVGs, enhancing their strategies for entry and exit points across different market conditions and time frames.

📦 Features

• MTF
  
• Mitigation
  
• Consequent Encroachment
  
• Threshold
  
• Hide Overlap
  
• Advanced Styling
  

⚙️ Settings

• Show: Controls whether FVGs are displayed on the chart.
  
• Show Last: Sets the number of FVGs you want to display.
  
• Length: Determines the length of each FVG.
  
• Mitigation: Highlights when an FVG has been touched, using a different color without marking it as invalid.
  
• Timeframe: Specifies the timeframe used to detect FVGs.
  
• Threshold: Sets the minimum gap size required for FVG detection on the chart.
  
• Show Mid-Line: Configures the midpoint line's width and style within the FVG. (Consequent Encroachment - CE)
  
• Show Border: Defines the border width and line style of the FVG.
  
• Hide Overlap: Removes overlapping FVGs from view.
  
• Extend: Extends the FVG length to the current candle.
  
• Elongate: Fully extends the FVG length to the right side of the chart.
  

⚡️ Showcase

Simple

Mitigated

Bordered

Consequent Encroachment

Extended


🚨 Alerts

This script provides alert options for all signals.

Bearish Signal

A bearish signal is triggered when the price moves back into a bearish inversion zone and then reverses downward.

Bullish Signal

A bullish signal is triggered when the price returns to a bullish inversion zone and then breaks upward out of the top.

⚠️ Disclaimer

Trading involves significant risk, and many participants may incur losses. The content on this site is not intended as financial advice and should not be interpreted as such. Decisions to buy, sell, hold, or trade securities, commodities, or other financial instruments carry inherent risks and are best made with guidance from qualified financial professionals. Past performance is not indicative of future results.