Fair Value Gap Absorption Indicator

Fair Value Gap Absorption Indicator watches each fair value gap after it forms, not just when it prints. Detection uses the classic three-candle pattern (a large central candle whose neighbors' wicks fail to overlap it), and the tool then keeps that imbalance highlighted until a new gap surfaces, measuring how much of the void price has worked back through along the way.

How to Trade the Fair Value Gap Absorption Indicator?

• New imbalance appears: a displacement candle has left untraded space; expect price to be drawn back toward it before the move resumes.
• Mitigation percentage climbs: the gap is being repaired bar by bar. The overlay shows exactly how much absorption has occurred, a process that often spans several candles.
• Gap fully absorbed: with the inefficiency repaired, continuation in the original trend direction becomes the working scenario.
• Historical gaps on: keep prior imbalances visible to study how the instrument you trade typically treats them.

Fair Value Gap Absorption Indicator Settings

• Fair Value Gap Width Filter: a multiplier that filters detections by gap size, tuning sensitivity up or down.
• Percentage Display of Mitigation: overlays the percent of each imbalance already absorbed directly on the chart.
• Visibility of Historical Fair Value Gaps: keeps past gaps on display for review.
• Color options cover bullish and bearish imbalances and their mitigation states.

Frequently Asked Questions

Why is the width filter quiet early in the chart?

How is this different from a standard gap detector?

What does access cost?