The Fair Value Gap (FVG) Indicator is a technical analysis tool designed for price-action traders to identify and monitor short-term market imbalances. It automatically detects bullish and bearish Fair Value Gaps using a robust 3-bar logic and visually highlights active (unmitigated) zones on trading charts. The indicator tracks when these zones are later filled (mitigated) by price action, removing the zone highlight and optionally drawing a persistent dotted line for historical reference.
Key features include automated FVG detection, mitigation tracking, and an overlay showing recent unmitigated levels as bold horizontal lines for easy visual scanning. Users can select manual or automatic thresholding to adapt sensitivity to market conditions, with adjustable parameters controlling the responsiveness of the auto threshold. Customizable visual settings allow traders to tailor the appearance of bullish and bearish zones.
The indicator operates on closed bars to minimize repainting, ensuring reliable signals for live trading and backtesting. Terminal logging provides concise statistics on detected gaps and mitigations, aiding validation and strategy tuning.
Suitable for day traders, swing traders, scalpers, and analysts, the Fair Value Gap Indicator supports markets including Forex, indices, commodities, cryptocurrencies, and stocks. It offers a focused, low-noise view of market imbalances to assist in identifying potential price return targets and managing trades.