FAIR VALUE GAP FINDER

The FAIR VALUE GAP FINDER indicator highlights price inefficiencies by identifying and plotting Fair Value Gaps (FVG) on the chart for both standard and multi-timeframe intervals. This tool serves to assist traders in identifying potential entry points or determining market bias based on historical price action gaps.

Usage

The Usage of the Fair Value Gap Finder involves identifying zones where price has moved rapidly, leaving behind "gaps" between the high of the first candle and the low of the third candle (or vice versa).

• Standard Gaps: These are identified on the current chart timeframe and are useful for immediate intraday analysis.
• MTF Gaps: By selecting a higher timeframe in the settings, users can see significant price inefficiencies from a macro perspective projected onto their current chart.
• Midpoints: The indicator can plot the 50% level of a gap, which often acts as a sensitive area for price retests.
• Boxes vs. Lines: Boxes provide a visual representation of the entire range of the inefficiency, while lines can be used to mark specific key levels like the midpoint.

Details

Fair Value Gaps occur in a three-candle sequence. In a bullish FVG, the low of the third candle is higher than the high of the first candle, leaving a gap. In a bearish FVG, the high of the third candle is lower than the low of the first candle. This script utilizes request.security to fetch data from different timeframes and uses box and line objects to render these zones dynamically. It calculates the necessary bar offsets to ensure that MTF boxes are correctly aligned with the historical bars they represent.

Settings

General

• MTF Enable/Timeframe: Toggles the multi-timeframe functionality and allows you to select which timeframe to pull gap data from.

Bull FVG

• MID: Toggles the visibility of the midpoint line for bullish gaps.
• MTF: Toggles the visibility of the box for multi-timeframe bullish gaps.
• STD: Toggles the visibility of the box for standard bullish gaps.
• Colors: Individual color pickers for the lines and box backgrounds.

Bear FVG

• MID: Toggles the visibility of the midpoint line for bearish gaps.
• MTF: Toggles the visibility of the box for multi-timeframe bearish gaps.
• STD: Toggles the visibility of the box for standard bearish gaps.
• Colors: Individual color pickers for the lines and box backgrounds.

FAQ

How do I use this to find entries?

Traders often look for price to return to a Fair Value Gap to "fill" the inefficiency before continuing in the original direction.

Can I see gaps from a Daily chart on a 15-minute chart?

Yes, by setting the MTF input to 'D' (Daily), the indicator will project the daily Fair Value Gaps onto your lower timeframe chart.

How do I access FAIR VALUE GAP FINDER?

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