FVG Trailing Stop

The FVG Trailing Stop turns unfilled imbalances into an adaptive exit line. Every new FVG contributes the extremity farthest from price (the bottom of an upward gap, the top of a downward one) and a fixed number of these unmitigated levels are averaged per direction, then smoothed into a trailing stop that follows the trend.

How to Trade the FVG Trailing Stop?

• Price above the trailing stop: bearish gaps have been mitigated and conditions read as an uptrend.
• Price below the trailing stop: bullish gaps have been mitigated; the read flips bearish.
• Stop touched, average respected: the more transparent directional average underneath holds as support or resistance, a continuation scenario.
• Stop touched, average crossed: the trend does not shift until price crosses that secondary average; when it does, treat it as a potential reversal.
• Reset on Cross enabled: a crossed stop disappears into a neutral state and reprints once price resumes its prior direction, a clean cue for re-entries and a filter against false flips.

Among trailing methods, this one is unusual for anchoring to structure: the level moves because gaps get filled, not because price traveled some fixed distance. Once a gap is mitigated it drops out of the calculation and a newer one takes its place, keeping the stop responsive yet smooth.

FVG Trailing Stop Settings

• Unmitigated FVG Lookback: how many unmitigated gaps feed the calculation; more gaps produce a steadier, more stable stop.
• Smoothing Length: the simple moving average applied to the raw averages; longer smoothing cuts noise but delays signals.
• Reset on Cross: enables the neutral state that hides the stop when crossed and redraws it once the trend resumes.

Frequently Asked Questions

How is this different from an ATR-based trailing stop?

What pairs well with it?

How do I access the FVG Trailing Stop?