Fair Value Gaps by DGT

The Fair Value Gaps by DGT indicator provides a refined, multi-timeframe detection tool designed to visualize institutional imbalance zones and liquidity displacement directly on the chart. It continuously tracks unfilled, partially repaired, and fully resolved imbalances, offering traders a structural view of where price may seek rebalancing.

Usage

The Usage section focuses on identifying price delivery inefficiencies across multiple timeframes to uncover institutional footprints. Traders can use the script to visualize liquidity targets and key re-pricing regions.

• Multi-Timeframe Analysis: Users can detect Fair Value Gaps (FVGs) from the current chart, higher timeframes (HTF), or lower timeframes (LTF). The LTF mode includes an "Auto" setting that intelligently selects the optimal lower resolution based on the current chart.
• Fill Tracking: The script provides real-time monitoring of each FVG's fill progress with live percentage updates. This helps in understanding how much of an imbalance has been mitigated.
• Fill Method Interpretation: The interpretation of a "filled" gap can be customized. For example, setting it to "Body Beyond" requires a candle close outside the zone for a fill, while "Any Touch" triggers as soon as price enters the zone.
• Label Management: To maintain a clean chart, labels indicating timeframe and fill percentage can be toggled. Even when hidden, users can hover over the FVG midpoint to view detailed tooltips.

Details

The script identifies imbalances where the low of the first candle and the high of the third candle (in a three-candle sequence) do not overlap. These zones represent areas where price moved too quickly, leaving an inefficiency.

For higher timeframe detection, the script reconstructs HTF bars to locate gaps that may not be obvious on the current chart. For lower timeframe (intrabar) detection, it utilizes an algorithm to scan internal price action for smaller gaps that contribute to the larger trend. The script also includes a filtering threshold based on Average True Range (ATR) to ensure only significant imbalances are displayed.

Settings

Fair Value Gaps #1 & #2 (Chart/HTF)

• Show/Hide Toggle: Enables or disables the specific FVG detection layer.
• Timeframe: Selects the source timeframe for FVG detection (e.g., Chart, 1 Hour, 1 Day).
• Fill Method: Determines the logic for when a gap is considered filled (Any Touch, Midpoint Reached, Wick Sweep, Body Beyond).
• Colors: Customizes the color for bullish and bearish zones.
• Labels: Toggles the visibility of on-chart text labels.
• Max Bars Back: Sets the lookback period for analyzing and displaying historical FVGs.

Fair Value Gaps #3 (LTF)

• Intrabar Timeframe: Sets the specific lower timeframe or "Auto" for internal gap detection.
• Filter Threshold: A sensitivity setting that uses ATR to filter out insignificant or small price gaps.
• Colors/Labels: Customizes the visual output for the lower timeframe layer.

FAQ

How do I access this indicator? 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 Wick Sweep and Body Beyond fill methods? "Wick Sweep" considers a gap filled when a wick passes through the entire zone, whereas "Body Beyond" requires a candle body to close past the zone's boundary for confirmation.

How does the Auto LTF setting work? The script uses a predefined map to select a lower timeframe relative to your chart. For instance, if you are on a 1-day chart, the script will automatically look for FVGs on the 1-hour timeframe.