Filled Fair Value Gaps

The Filled Fair Value Gaps indicator identifies and highlights instances where price action has fully retraced to fill previous Fair Value Gaps (FVG), helping traders visualize key historical support and resistance levels without cluttering the chart with unfilled gaps.

Usage

This script is used to identify historical points of price mitigation. Unlike standard FVG indicators that focus on open gaps, this tool specifically highlights FVGs that have been "filled" (revisited by price).

• Identifying Retracements: Traders can use the boxes to see where price has successfully filled an imbalance, which often acts as a pivot or a continuation point.
• Reducing Noise: By only displaying filled gaps, the chart remains cleaner, showing only the areas that have already interacted with price action.
• Trend Confirmation: Repeatedly filling bullish FVGs during an uptrend can signal healthy price action and the successful mitigation of liquidity voids.

Details

A Fair Value Gap occurs when there is a three-candle sequence where the low of the third candle is higher than the high of the first candle (Bullish FVG), or the high of the third candle is lower than the low of the first candle (Bearish FVG). This indicator tracks these gaps and monitors subsequent price action. A gap is considered "filled" when:

• Bullish FVG: The current price low touches or goes below the bottom boundary of the FVG.
• Bearish FVG: The current price high touches or goes above the top boundary of the FVG.

Once a fill is detected, the indicator draws a box of a specified width at the origin of the gap to mark the event.

Settings

Display

• Show Bullish FVGs: Toggles the visibility of filled bullish fair value gaps.
• Show Bearish FVGs: Toggles the visibility of filled bearish fair value gaps.

Colors

• Bullish FVG Color: Sets the fill and border color for bullish FVG boxes.
• Bearish FVG Color: Sets the fill and border color for bearish FVG boxes.

Settings

• Max Bars to Look Back: Determines how far back the script will store and check for unfilled gaps before removing them from memory.
• Box Width (bars): Sets the horizontal length of the box drawn when a gap is filled.

FAQ

How do I access Filled Fair Value Gaps?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the difference between this and a regular FVG indicator?

A regular FVG indicator shows gaps that have not yet been touched by price. This tool specifically waits for the gap to be mitigated/filled before displaying it, highlighting historical areas of interest.

Does this indicator provide signals?

The indicator is a visualization tool for price action concepts. While it includes alerts for when gaps form and are filled, it is intended to be used as part of a broader technical analysis strategy rather than a standalone signal generator.