MK FVG & Hidden Div & Confirm

Indicator Title
FVG Mitigation & Pattern Confirmation

Short Description
A tool for finding high-probability reversal points by identifying Candlestick Patterns that occur within significant Fair Value Gap (FVG) zones. Helps filter out noise and confirms entries with price action.

Long Description
Overview
This indicator is designed to assist Price Action and Smart Money Concepts (SMC) traders in finding significant reversal points. It combines the concept of Fair Value Gaps (FVGs)—areas of liquidity imbalance—with the formation of Candlestick Patterns to confirm the strength of a signal.

The core principle of the indicator is to "filter" candlestick patterns, giving special priority to those that form at the moment the price returns to mitigate an FVG zone. These are often highly effective reversal points.

Key Features
Automatic Fair Value Gap (FVG) Detection: Clearly draws Up FVG (blue) and Down FVG (orange) zones on the chart.

Displays Divergence (HD): When the price mitigates an FVG zone, the script checks for RSI Divergence. If found, it displays an "HD" label as an additional confirmation signal.

Identifies 4 Reversal Pattern Types:

3-Bar Engulfing Pattern

Dabel Pattern

4-Bar Flip Pattern

⭐ Core Feature: High-Quality Pattern Filtering:

Colored Labels (Green/Red/etc.): These are High-Probability signals. They appear only when a pattern forms within a specified window after an FVG has been mitigated.

Black Labels: These are Low-Probability signals that occur outside of an FVG zone (this display can be toggled off in the settings).

How to Use
Look for FVG Zones: Spot the orange (Down FVG) or blue (Up FVG) boxes drawn by the indicator.

Wait for Mitigation: Wait for the price to move back into and test that FVG zone.

Look for Confirmation:

The best signal: The appearance of a "colored" pattern label (not black) within the defined Mitigation Window (default 10 bars) after the price has entered the FVG zone.

Extra confluence: If an "HD" (Divergence) label appears at the same time, it adds significant reliability to that reversal point.

Consider the Risk: A black pattern label is a signal that occurred without any immediate relationship to an FVG. These setups carry higher risk and can be disabled in the settings to reduce chart noise.

Important Settings
Mitigation Window (X Bars): Defines the number of bars after an FVG mitigation to consider a "high-probability zone" for patterns to form.

Show Labels Outside Zone?: Toggles the visibility of the black (low-probability) pattern labels.

Show/Hide Patterns: You can independently enable or disable the display for each of the four pattern types.

Best For
Traders who use Price Action, Smart Money Concepts (SMC), or those who focus on Fair Value Gaps and finding high-probability trade entries.