HTF Fair Value Gap
Sep 21, 2023
The HTF Fair Value Gap indicator is a powerful tool for traders aiming to pinpoint fair value gaps (FVGs) on higher timeframes within charting platforms. By marking these critical price areas, traders can gain insights into potential bullish or bearish trends and make informed trading decisions.
How to Trade the HTF Fair Value Gap Indicator?
This innovative indicator assists in spotting fair value gaps from higher timeframes, which are crucial for understanding market momentum. It visually represents these gaps with background color changes: green for bullish FVGs and red for bearish ones. Such visual cues simplify the identification process, allowing traders to quickly assess market conditions.
The most recent fair value gap is illustrated as a distinct candle positioned to the right of the latest price bar. These candles come with dashed lines that precisely mark the FVG's upper and lower boundaries, aiding traders in evaluating the market's current state.
The candle wicks represent price deviations from the FVG's boundaries after its creation, which is instrumental in understanding its position within the ongoing price trend. By analyzing these deviations, traders can better determine the strength and duration of the current trend.
To further assist traders, a "Status" dashboard indicates whether an FVG has been mitigated. A solid-bordered FVG candle signals an unmitigated gap, providing vital information on potential price action.
Customizing Your Indicator Settings
- Timeframe: Select the chart timeframe to detect fair value gaps accurately, ensuring you capture significant market movements.
Style Adjustments
- Offset: Adjust this to position the FVG candle bars to the right away from the last price bar, customization that enhances chart readability.
- Width: Determine the span (in bars) of the FVG candle to better fit your analytical needs.
Dashboard Configuration
- Show Dashboard: Toggle this feature to display or hide the dashboard based on your trading style.
- Location: Choose where the dashboard appears on your chart for optimal viewing.
- Size: Customize the dashboard’s size, making sure it's seamlessly integrated into your chart layout.
FAQ
How do I access the HTF Fair Value Gap indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
The HTF Fair Value Gap indicator is tailor-made for traders looking to enhance their trading strategy with a clearer understanding of market dynamics through the identification of fair value gaps on higher timeframes. By incorporating this tool into your trading routine, you gain a competitive edge in predicting market trends effectively.
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