Consequent Encroachment

Consequent Encroachment is the definitive clean build for consequent encroachment levels: the 50% line of each fair value gap and, optionally, of a prominent candle wick. Each confirmed three-candle gap gets its midpoint drawn from the middle candle and tracked bar by bar — touched, closed through, or fully filled — while qualifying wicks contribute dotted midpoints of their own. Defaults keep the last 10 levels of each type.

How to Trade the Consequent Encroachment?

• CE tested: price touches a gap midpoint — half the imbalance has been rebalanced, the spot midpoint-based entries watch for a reaction.
• CE breached: a close through the midpoint turns the line dashed; the gap no longer reads as respected and expectation shifts toward a full fill.
• Wick CE revisited: price returns to a prominent wick's midpoint — the half-revisit that level anticipates, which completes it.

Each event carries a bullish and a bearish alert, so the levels slot into a wider Smart Money Concepts workflow without chart-watching.

Consequent Encroachment Settings

• Minimum Gap Width (default 0): ignores gaps under this multiple of the 14-period ATR; 0 marks every gap.
• Show Last (default 10): levels kept per type, oldest removed first.
• Remove Completed CEs (default on): deletes a level after a full fill or wick revisit; disable to keep it frozen and recolored.
• Wick Midpoints (default on): also tracks the 50% line of prominent wicks.
• Minimum Wick % (default 50): share of the candle range a wick must occupy; when both qualify, only the longer is used.
• Minimum Wick Size (default 0): optional additional ATR filter on the wick's span.
• Style inputs govern gap-zone shading, CE tags, line width and the bullish, bearish and completed colors.

Frequently Asked Questions

How does a CE differ from a balanced price range?

A balanced price range forms where opposing gaps overlap, leaving a two-sided zone repriced in both directions. A CE is a single line inside one imbalance, giving the zone an exact middle to judge reactions against.

Why do candle wicks get the same treatment?

The methodology reads a long wick as a one-candle inefficiency: an auction that traveled and snapped back inside a single bar. Its midpoint is watched for a reaction on the return, and unlike gap midpoints, a single revisit completes a wick level.

What do the different line styles mean?

Gap midpoints print solid and switch to dashed once a candle closes through them; wick midpoints print dotted from the start. With Remove Completed CEs disabled, finished levels stay on the chart in the completed shade.