# FVG Positioning Average FVG Positioning Average is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Averages the initiation prices of recent fair value gaps into a Bull Average and a Bear Average: an estimate of where aggressive buyers and sellers built their positions. Each line shows only if price has traded on its trend side (above the Bull Average, below the Bear Average) within the last five bars, and acts as support or resistance, while both appearing at once flags a contested market. Useful for entries, exits, and stops. - Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 16, 2024. - Access: free. - Concepts: [Fair Value Gap](https://www.luxalgo.com/library/concept/fair-value-gap/) (primary), [Dynamic S/R Via MA](https://www.luxalgo.com/library/concept/dynamic-s-r-via-ma/) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn1r47002evhsgqqczu6yf - Page: https://www.luxalgo.com/library/indicator/fvg-positioning-average/ The **FVG Positioning Average** estimates where significant participants are positioned by averaging the initiation prices of recent [fair value gaps](https://www.luxalgo.com/library/concept/fair-value-gap/), the last levels traded before each imbalance opened. Because forceful buying or selling is what creates a gap, those averages act as a footprint of that activity, plotted as a Bull Average and a Bear Average. ## How to Trade the FVG Positioning Average? - **Bull Average**: visible while price holds above it, a level buyers are expected to defend for the uptrend to stay intact. - **Bear Average**: visible while price holds below it, the mirror-image ceiling in downtrends. - **One average alone**: marks a clear [dynamic support or resistance](https://www.luxalgo.com/library/concept/dynamic-s-r-via-ma/) line for the prevailing trend, a reference for entries, exits, and stop placement. - **Both averages visible**: buyers and sellers are competing for control. Watch for continuation after weak counter-attempts, a reversal if a new level gets established, or consolidation while price oscillates between the two lines. Initiation levels are precise by design: a bullish gap's initiation is its lowest point (the base), a bearish gap's is its highest (the peak). Every gap feeding the current averages can be displayed on the chart for reference and hidden through the "Show FVGs on Chart" toggle. ## FVG Positioning Average Settings - **FVG Lookback**: how much history feeds the averages, counted in bars or in gaps depending on the lookback type. - **Lookback Type**: "Bar Count" keeps the averages tied to the recent chart window (lines hide when no qualifying gap falls inside it), while "FVG Count" always uses a set number of gaps for a continuous, longer-term view. - **ATR Multiplier**: a gap must be wider than ATR times this value to count, focusing the calculation on meaningful imbalances. ## Frequently Asked Questions ### What exactly is an initiation level? It is the price where a fair value gap began: the last traded level before the imbalance opened. Bullish gaps record their base, bearish gaps their peak, and those points are what the two averages are built from. ### How is this different from the FVG Channel? The [FVG Channel](https://www.luxalgo.com/library/indicator/fvg-channel/) averages the mitigation levels of unmitigated gaps into a five-band structure, whereas the Positioning Average tracks initiation prices to approximate where participants entered. One frames structure around price; the other frames positioning behind it. ### How do I access the FVG Positioning Average? It is available free of charge in the LuxAlgo Library. Add it to your chart from this page, then match the lookback to the horizon you trade. 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 - [Fair Value Gaps Mitigation Oscillator](https://www.luxalgo.com/library/indicator/fair-value-gaps-mitigation-oscillator/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/fair-value-gaps-mitigation-oscillator.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 - [Expanded Cloud](https://www.luxalgo.com/library/indicator/expanded-cloud/) (Dynamic S/R Via MA): markdown at https://www.luxalgo.com/library/indicator/expanded-cloud.md - [MA Sabres](https://www.luxalgo.com/library/indicator/ma-sabres/) (Dynamic S/R Via MA): markdown at https://www.luxalgo.com/library/indicator/ma-sabres.md --- Source: https://www.luxalgo.com/library/indicator/fvg-positioning-average/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/