Fair Value Gap (FVG) Pro

WHAT IS IT?

A Fair Value Gap is a three-candle price imbalance where institutional algorithms moved price so quickly that no two-sided trading occurred. Candle[-2]'s high sits entirely below candle[0]'s low (bullish FVG) or candle[-2]'s low sits entirely above candle[0]'s high (bearish FVG). These zones are used as institutional re-entry areas. Standard FVG implementations display all gaps regardless of size, cluttering charts with insignificant micro-imbalances.

INDICATORPRIME IMPROVEMENTS

Fair Value Gap Pro filters gaps by minimum ATR size, ensuring only statistically significant imbalances are displayed. Each zone shows as a colored box with configurable fill, border, and midline at the 50% Consequent Encroachment level. Four mitigation modes determine when zones are deleted: Wick or Close, Close Only, Wick Only, or Never. Zones extend dynamically to the right with a configurable max count. The ATR filter updates with current volatility for automatic timeframe adaptation.

HOW TO USE

Trade FVG zones as institutional re-entry areas. In an uptrend, wait for price to pull back into a bullish FVG zone and confirm with a bullish candlestick before entering long. The CE midline (50%) is the most common institutional entry point within the zone. Use Close Only mitigation for the most conservative zone management. Set minimum ATR to 0.5 for standard filtering; raise to 1.0 for higher-timeframe setups.

KIT CONFLUENCE

Fair Value Gap Pro and Market Structure Pro form the core pair in the Smart Money Kit. Only trade into FVG zones in the direction confirmed by Market Structure Pro's BOS or CHoCH. When a Liquidity Sweep clears stops below a swing low, price often retraces into the nearest bullish FVG before resuming upward. Volume-Based S&D Zones overlapping with an FVG create the highest-confluence entry areas in this kit.

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