FVG Alerts

The FVG Alerts indicator identifies and tracks price inefficiencies where buying and selling volumes are imbalanced, creating gaps between the wicks of consecutive candles. This tool is designed to highlight potential areas of interest where the market may "fill" the inefficiency before resuming its trend, providing actionable alerts for entry or exit points.

Usage

The indicator can be used to identify supply and demand imbalances on any timeframe. Bullish FVGs (Price Inefficiencies) occur when the low of the current candle is higher than the high of the candle two periods ago. Bearish FVGs occur when the high of the current candle is lower than the low of the candle two periods ago.

Traders can use these zones as:

• Target Zones: Aiming for price to return to and "fill" the gap.
• Support/Resistance: Using the gap boundaries or midpoint as potential reversal levels.
• Entry Confirmation: Entering trades when a gap is created in the direction of the prevailing trend.

The tool includes a specialized alert system. You can set alerts for "Bullish FVG Filled" or "Bearish FVG Filled" via the TradingView Alerts menu to be notified when price tests these imbalances without needing to monitor the chart manually.

Details

Fair Value Gaps represent a lack of liquidity at certain price levels. The script uses box drawings to visualize these gaps and extends them until they are mitigated.

A unique feature of this implementation is the mitigation logic. Users can choose whether a gap is considered "filled" when price touches the midpoint (50% level) or only after a full fill. This flexibility allows traders to align the indicator with different schools of thought regarding FVG mitigation.

Settings

FVG Settings

• Delete after Mid Fill?: If enabled, the FVG zone will be removed once price reaches the midpoint of the gap.
• Delete after Full Fill?: If enabled, the FVG zone will be removed once it is completely covered by subsequent price action.
• Wait for candle Close to confirm FVG?: When checked, the script will only plot and alert for a gap once the formation candle has closed, preventing "repainting" during the live bar.

Visual Settings

• Bullish FVG: Change the color and transparency of the bullish imbalance boxes.
• Bearish FVG: Change the color and transparency of the bearish imbalance boxes.

FAQ

How do I access FVG Alerts?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the difference between a mid-fill and a full-fill?

A mid-fill occurs when price reaches the 50% level of the gap. A full-fill occurs when price completely covers the entire range of the gap. Traders often view the 50% level (Consequent Encroachment) as a significant level of support or resistance.

Can I set alerts for when a new gap is created?

Yes, the script includes alert conditions for both the creation of new gaps and the filling of existing ones, allowing for comprehensive monitoring of market imbalances.