FVG Channel

The FVG Channel builds a price channel out of unmitigated fair value gaps: recent bullish gaps are averaged into the upper bands, bearish gaps into the lower bands, over a user-defined lookback. Five lines are plotted in total: two outer extremes and three inner bands at Fibonacci ratios (0.786, 0.5, and 0.236) of the outers, giving a graded map of where imbalances cluster.

How to Trade the FVG Channel?

• Price holding above the inner upper band: the 0.786 band defines an uptrend and acts as dynamic support on retracements.
• Price losing the inner upper band without recovering: a warning of uncertainty that can resolve into consolidation or reversal; the same logic mirrors for downtrends at the lower bands.
• Breakout Levels: when every gap in one direction has been mitigated except one, the survivor is a "last stand" level, support or resistance whose decisive break reflects strong momentum.
• Reversal signals: printed when all gaps on one side are mitigated and an engulfing candle forms in the opposite direction; candle colors also change once a side is fully cleared.

Under the hood the channel is computed in two steps: mitigation levels of the tracked gaps (bottoms for bullish, tops for bearish) are averaged per side, then a simple moving average smooths the result. The reversal signals are best weighed alongside other tools rather than taken in isolation.

FVG Channel Settings

• Unmitigated FVG Lookback: the maximum number of unmitigated gap levels included in the calculation. Higher values build a steadier, longer-horizon channel.
• Smoothing Length: the intensity of smoothing applied to the channel. Set it to 1 to inspect the raw first-step averages.

Frequently Asked Questions

How does the FVG Channel differ from the FVG Trailing Stop?

Can the FVG Channel call reversals on its own?

How do I access the FVG Channel?