All indicators

HTF Fair Value Gap

By LuxAlgoSep 21, 2023

HTF Fair Value Gap is an indicator on Vela, our next-generation charting platform, written in Pine Script®.

HTF Fair Value Gap detects fair value gaps on a higher timeframe of your choosing and keeps them in front of you while you execute on a lower one. Background shading flags every higher timeframe gap as it occurs (green for bullish, red for bearish) while the most recent gap is rendered as a candle offset to the right of price, its dashed lines marking the gap's upper and lower boundaries and its wicks recording price's deviations from those boundaries since formation. A Status dashboard completes the picture, reporting whether the gap has been mitigated.

How to Trade the HTF Fair Value Gap?

  • Green background: a bullish higher timeframe gap has printed, momentum context that favors long-side ideas on the trading timeframe.
  • Red background: the bearish equivalent, flagging downside imbalance from above your chart.
  • Dashed boundary lines: the most recent gap's edges are natural reference levels for entries, stops, and targets as price rotates back into the zone.
  • Solid border on the FVG candle: the gap remains unmitigated. The imbalance is still open, and the level retains its draw on price.

The wicks on the projected candle deserve attention: they summarize post-formation excursions from the gap's boundaries, a compact read on whether the gap is holding within the ongoing trend or being ground down.

HTF Fair Value Gap Settings

  • Timeframe: the higher timeframe scanned for fair value gaps.
  • Offset and Width: where the projected FVG candle sits relative to the last bar, and how many bars wide it draws.
  • Dashboard inputs: visibility, location, and size of the Status dashboard.

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
See plans

Also works on

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

Run it on Vela. Make it yours with Quant.

Open this indicator free on Vela, our next-generation charting platform. Then ask Quant, our coding agent built into Vela, to retune it or turn it into a backtested strategy of your own.