Fair Value Gap

Fair Value Gap finds the voids that aggressive moves leave behind and manages their whole life cycle on the chart. A bullish gap prints when the current low clears the high from two bars back; a bearish gap when the current high stays under the low from two bars back. Each imbalance becomes a box, and the box is deleted the moment price trades back through it, the foundational detection pattern behind the Smart Money Concepts family.

How to Trade the Fair Value Gap?

• Fresh gap prints: one-sided pressure just left a range untraded. Treat the box as a zone of interest where price may return before continuing.
• Price re-enters a box: the gap is mitigated and removed; enable Mitigation Levels to leave dashed lines at those prices for later retests.
• Higher-timeframe confluence: run the Timeframe input above the chart (for example 1-hour gaps over a 15-minute chart) and favor setups that align across both.
• Dashboard read: bullish and bearish gap counts with mitigation percentages show how reliably the market has been filling its inefficiencies lately.

Fair Value Gap Settings

• Threshold %: the minimum size a gap must reach to count, with Auto deriving the threshold from average volatility instead.
• Unmitigated Levels: how many of the most recent open gaps stay highlighted.
• Mitigation Levels: draws dashed lines where gaps were filled.
• Timeframe: runs detection on a timeframe independent of the chart.
• Extend / Dynamic: projects boxes forward and lets subsequent price action resize their boundaries; further toggles cover dashboard visibility, corner, and text size.

Frequently Asked Questions

What do the dashboard percentages tell me?

Do I need a separate tool for higher-timeframe gaps?

How do I access the Fair Value Gap indicator?