The Breakaway Fair Value Gap (FVG) is a typical FVG located at a point where the price is breaking new Highs or Lows.

USAGE

In the screenshot above, the price range is visualized by Donchian Channels.

In theory, the Breakaway FVGs should generally be a good indication of market participation, showing favor in the FVG's breaking direction. This is a combination of buyers or sellers pushing markets quickly while already at the highest high or lowest low in recent history.

While this described reasoning seems conventional, looking into it inversely seems to reveal a more effective use of these formations.

When the price is pushed to the extremities of the current range, the price is already potentially off balance and over-extended. Then an FVG is created, extending the price further out of balance.

With this in consideration, After identifying a Breakaway FVG, we could logically look for a reversion to re-balance the gap.

However, it would be illogical to believe that the FVG will immediately mitigate after formation. Because of this, the dashboard display for this indicator shows the analysis for the mitigation likelihood and timeliness.

In the example above, the information in the dashboard would read as follows (Bearish example):

[quote]Out of 949 Bearish Breakaway FVGs, 80.19% are shown to be mitigated within 60 bars, with the average mitigation time being 13 bars. The other 19.81% are not mitigated within 60 bars. This could mean the FVG was mitigated after 60 bars, or it was never mitigated. [/quote]

The unmitigated FVGs within the analysis window will extend their mitigation level to the current bar. We can see the number of bars since the formation is represented to the right of the live mitigation level.

Utilizing the current distance readout helps to better judge the likelihood of a level being mitigated.

Additionally, when considering these mitigation levels as targets, an additional indicator or analysis can be used to identify specific entries, which would further aid in a system's reliability.

SETTINGS

• Trend Length: Sets the (DC) Trend length to use for Identifying Breakaway FVGs.
• Show Mitigation Levels: Optionally hide mitigation levels if you would prefer only to see the Breakaway FVGs.
• Maximum Duration: Sets the analysis duration for FVGs, Past this length in bars, the FVG is counted as "Un-Mitigated".
• Show Dashboard: Optionally hide the dashboard.
• Use Median Duration: Display the Median of the Bar Length data set rather than the Average.