# Fair Value Gaps Mitigation Oscillator

Fair Value Gaps Mitigation Oscillator is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

The Fair Value Gaps Mitigation Oscillator compresses imbalance analysis into one pane: it tracks a chosen number of recent gaps, measures how much of each remains unfilled, and normalizes the total between +1 and -1. Histogram bars size every new gap against the outstanding total, so trend strength shows up as imbalances the market refuses to repair.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Mar 5, 2024.
- Access: free.
- Concepts: [Fair Value Gap](https://www.luxalgo.com/library/concept/fair-value-gap/) (primary), [FVG Behavior Rules](https://www.luxalgo.com/library/concept/fvg-behavior-rules/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn1jqy0024vhsgabqqet49
- Page: https://www.luxalgo.com/library/indicator/fair-value-gaps-mitigation-oscillator/

**Fair Value Gaps Mitigation Oscillator** condenses the state of recent [fair value gaps](https://www.luxalgo.com/library/concept/fair-value-gap/) into normalized Bullish, Bearish and Net lines. Instead of boxing imbalances on the price panel, it tracks a user-defined number of bullish and bearish gaps, measures how much of each remains unfilled, and scales the running total between +1 and -1, a direct reading of whether the market is defending its imbalances or repairing them.

## How to Trade the Fair Value Gaps Mitigation Oscillator?

- **Sustained high values**: bullish gap area is staying open. Demand keeps lifting price away from its inefficiencies, typical of a robust uptrend.
- **Deep negative values**: bearish gaps dominate and remain unfilled, the signature of an intensifying downtrend.
- **Readings near +1 or -1**: the entire lookback is either fully unmitigated in one direction or entirely mitigated in the opposite one: one-sided conditions at their most stretched.
- **Histogram bars**: each new gap prints a bar sized as its share of total outstanding gap width, with a 50% hash mark for reference. An outsized bar means a single displacement now dominates the picture.

Mitigation starts when price closes over, under, or within a gap, and the total falls by the mitigated percentage. Reading the line alongside the standard [FVG behavior rules](https://www.luxalgo.com/library/concept/fvg-behavior-rules/) helps separate continuation conditions from a market busy repairing itself.

## Fair Value Gaps Mitigation Oscillator Settings

- **FVG Lookback**: how many bullish and bearish gap pairs stay in memory. Raise it to profile longer-term trend structure; lower it for a faster, more local read of gap behavior.

## Frequently Asked Questions

### What changes when I raise the FVG Lookback?

More gaps enter the calculation, so the oscillator leans toward the longer-term trend and any single gap matters less. Smaller values make it snap to recent displacement, at the cost of stability.

### How does this differ from the absorption indicator?

The [Fair Value Gap Absorption Indicator](https://www.luxalgo.com/library/indicator/fair-value-gap-absorption-indicator/) follows one gap at a time on the price chart and reports its fill percentage. The oscillator aggregates a whole lookback of gaps into normalized Bullish, Bearish and Net lines, so each tool answers a different question: zone quality versus market state.

### How can I get the oscillator?

It is free in the LuxAlgo Library, and this page can launch it inside Quant, our coding agent, if you want to backtest how its readings line up with your entries. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Fair Value Gap Absorption Indicator](https://www.luxalgo.com/library/indicator/fair-value-gap-absorption-indicator/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/fair-value-gap-absorption-indicator.md
- [Breakaway Fair Value Gaps](https://www.luxalgo.com/library/indicator/breakaway-fair-value-gaps/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/breakaway-fair-value-gaps.md
- [HTF Fair Value Gap](https://www.luxalgo.com/library/indicator/htf-fair-value-gap/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/htf-fair-value-gap.md
- [Inversion Fair Value Gaps (IFVG)](https://www.luxalgo.com/library/indicator/inversion-fair-value-gaps-ifvg/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/inversion-fair-value-gaps-ifvg.md
- [ICT Implied Fair Value Gap (IFVG)](https://www.luxalgo.com/library/indicator/ict-implied-fair-value-gap-ifvg/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/ict-implied-fair-value-gap-ifvg.md
- [Liquidity Voids (FVG)](https://www.luxalgo.com/library/indicator/liquidity-voids-fvg/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/liquidity-voids-fvg.md
- [ICT Immediate Rebalance](https://www.luxalgo.com/library/indicator/ict-immediate-rebalance/) (FVG Behavior Rules): markdown at https://www.luxalgo.com/library/indicator/ict-immediate-rebalance.md
- [FVG Instantaneous Mitigation Signals](https://www.luxalgo.com/library/indicator/fvg-instantaneous-mitigation-signals/) (FVG Behavior Rules): markdown at https://www.luxalgo.com/library/indicator/fvg-instantaneous-mitigation-signals.md

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Source: https://www.luxalgo.com/library/indicator/fair-value-gaps-mitigation-oscillator/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/