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FVG Instantaneous Mitigation Signals

By LuxAlgoJul 16, 2024

FVG Instantaneous Mitigation Signals is an indicator on Vela, our next-generation charting platform, written in Pine Script®.

Static chart image

The FVG Instantaneous Mitigation Signals indicator isolates one specific event: a fair value gap that price fills just one bar after it forms. That immediate fill flips the read (a bearish gap mitigated instantly produces a bullish signal, and a bullish gap mitigated instantly produces a bearish one), and every signal can be framed with take-profit, stop-loss, and trailing-stop levels.

How to Trade the FVG Instantaneous Mitigation Signals?

  • Bullish signal: a bearish gap is mitigated on the bar after it forms; sentiment is read as flipping upward.
  • Bearish signal: a bullish gap is mitigated one bar after forming, flipping the read downward.
  • Highlighted gap and average level: each area is shaded and its average level extends until price reaches it from the side opposite the gap's bias, a ready support or resistance reference.
  • TP/SL areas: zones begin at the mitigated gap's average level and extend by a user-set number of ATRs; larger multipliers suit longer-horizon moves.

Rapid fills suggest a market intent on resolving imbalances, often overcorrecting into new ones, the feedback loop these signals lean on. A trailing stop loss rounds out the toolkit: it advances as price makes new highs or lows and can restart on every signal or only when an opposite-bias signal appears, so an aligned signal keeps the existing stop.

FVG Instantaneous Mitigation Signals Settings

  • FVG Width Filter: sets a minimum gap width; higher values keep only the more volatile gaps and thin out signals.
  • TP Area / SL Area: toggle the take-profit and stop-loss zones drawn on new signals.
  • Multiplier: one per zone (TP, SL, and trailing stop), controlling distance in ATR units. Higher pushes the level further from price.
  • Reset Trailing Stop: choose "Every Signals" or "Inverse Signals" to control when the trailing level restarts.

Frequently Asked Questions

Free to use

Run it on Vela. Go further with a paid plan.

  • Up to 500 Custom Alerts, with webhook automation
  • Up to 10× the chart history of Free
  • Orderflow lookback up to full history
  • More Quant usage to customize it, plus extra usage when you need it
  • Futures data alongside crypto, stocks, forex and commodities
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Also works on

TradingView
NinjaTrader
MetaTrader 4/5
Original indicatorBuilt in-house by LuxAlgo

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