FVG Quality Scorer

The FVG Quality Scorer indicator evaluates Fair Value Gaps across four independent scoring axes to assign letter grades based on their formation characteristics. This tool moves beyond simple gap detection by quantifying displacement strength, volume distribution, contextual location, and structural alignment to help traders distinguish between various qualities of market imbalances.

Usage

The script automatically identifies bullish and bearish FVGs and assigns a grade (A through D) based on configurable thresholds. Users can use the dashboard to track active counts, total formations, and average mitigation times for each grade.

Key usage features include:

• Grade Filtering: Focus only on high-quality setups by setting a minimum display grade (e.g., only show A and B grade gaps).
• Lifecycle Tracking: Monitor zones as they transition from "Fresh" to "Tested," "Partially Filled," or "Mitigated."
• Confluence Analysis: Use the tooltips to see if a gap aligns with higher timeframe imbalances, specific trading sessions (Killzones), or recent liquidity sweeps.
• Visual Management: Toggle historical (mitigated) zones to study past price interactions or keep a clean chart by showing only active zones.

Details

The indicator utilizes a multi-dimensional scoring model (0-100) based on four axes:

1. Displacement Strength: Analyzes the middle candle's body-to-range ratio, ATR multiple, and surrounding candle alignment.
2. Volume Delta: Uses intrabar data to estimate buying/selling dominance and relative volume spikes during the gap formation.
3. Contextual Location: Evaluates the gap's position within Premium/Discount zones, HTF nesting, session timing, and proximity to liquidity sweeps.
4. Structural Alignment: Checks for alignment with Market Structure (HH/HL or LH/LL), EMA positioning, and recent Breaks of Structure (BOS).

Scores are fixed at the moment of creation to ensure the analysis reflects the conditions present at the time of formation.

Settings

General

• Swing Length: Lookback for pivot detection used in market structure and sweep analysis.
• ATR Length: Period for Average True Range used in displacement scoring.
• LTF for Volume Delta: The lower timeframe used for intrabar volume analysis.
• HTF for FVG Nesting: The higher timeframe used to check for nested confluence.
• Mitigation Method: Choose between "Wick" or "Close" to determine when a zone is considered invalidated.

Axis Weights & Grading

• Axis Weights: Adjust the influence (0-100) of Displacement, Volume, Context, and Structure on the total composite score.
• Grade Thresholds (A/B/C): For each grade, define the minimum score required for each axis and which axes are mandatory for that specific grade.

Display & Dashboard

• Minimum Display Grade: Filters out lower-quality gaps from the chart.
• Show Historic: Keeps mitigated zones visible as gray boxes.
• Show Dashboard: Toggles the statistical table and "Nearest A-Grade" tracker.

FAQ

How do I interpret the letter grades? Grades are assigned based on your specific criteria. Typically, an 'A' grade represents a gap that meets high standards across all four axes, while 'D' grades represent gaps that failed to meet the minimum thresholds for higher tiers.

Can I change how sensitive the volume analysis is? Yes, by adjusting the "LTF for Volume Delta" setting. Using a lower timeframe (like 1m on a 15m chart) provides more granular delta data for the displacement candle.

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