Aligned Timeframe Fair Value Gaps

The Aligned Timeframe Fair Value Gaps indicator automatically detects and displays Fair Value Gaps (FVGs) from higher timeframes on the current chart to highlight institutional imbalances and liquidity zones.

Usage

The tool is designed for multi-timeframe analysis, specifically following ICT (Inner Circle Trader) and Smart Money Concepts (SMC) methodologies.

• Automatic Alignment: The indicator selects a logical higher timeframe based on your current chart (e.g., viewing 15m FVGs while on a 1m chart).
• Imbalance Identification: Bullish FVGs (green boxes) represent areas where aggressive buying left price gaps, while Bearish FVGs (red boxes) represent aggressive selling gaps.
• Dynamic Tracking: When "Dynamic (shrinking) gaps" is enabled, the boxes will visually contract as price action partially fills the imbalance, providing real-time feedback on how much of the gap remains.
• Entry Points: Traders often look for price to return to these zones for retracement entries, especially when aligned with a Market Structure Shift (MSS). The 50% midline often acts as a significant reaction point within the gap.

Details

The indicator uses a three-candle pattern on the higher timeframe to identify imbalances. It specifically utilizes confirmed/closed higher timeframe bars to ensure the gaps are reliable and do not repaint.

The technical logic monitors price action relative to these zones:

• Partial Fill: If price enters the gap but does not cross it entirely, the gap is "triggered."
• Full Fill: If price moves entirely through the gap (clearing the low of a bullish FVG or the high of a bearish FVG), the gap is considered mitigated and is removed from the chart.
• Visibility Management: To maintain performance and chart clarity, the script uses an internal array system to track historical gaps while limiting the number of active visual objects.

Settings

Boxes

• Extend boxes: Determines how many bars into the future the FVG boxes are projected.
• Min Gap Size (%): Filters out insignificant gaps based on a percentage of price.
• Dynamic (shrinking) gaps: Enables the visual contraction of boxes as they are partially filled.
• Max Unfilled Gaps to Display: Limits the number of active, unfilled gaps visible on the chart.
• Max FVGs in History: Sets the total number of gaps stored in memory (50-200).

Colors

• Bullish/Bearish Gap Color: Adjusts the fill transparency and hue for the different gap types.
• Gap Border Color: Sets the color for the box outlines.

Midline

• Show Midline: Toggles the 50% equilibrium line within the FVG.
• Midline Style: Choose between Solid, Dashed, or Dotted lines.

Label

• Show FVG Label: Toggles the text label indicating the source timeframe (e.g., "1H FVG").
• Label Size: Adjusts the text size of the labels.

FAQ

How do I access Aligned Timeframe Fair Value Gaps?

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

Why do some gaps disappear suddenly?

Gaps are removed once they are "filled" or mitigated by price action. If you have "Dynamic gaps" disabled, the box will remain its original size until price touches the far side of the gap, at which point it is deleted.

Can I change which higher timeframe is used?

The indicator uses an internal mapping logic to ensure the aligned timeframe is always relevant to your current view. For example, if you are on a 1-hour chart, it will automatically look for Daily FVGs to provide higher-level context.