eBacktesting - Learning: FVG

eBacktesting - Learning: FVG is an indicator in the eBacktesting Learning series: a collection of tools designed to help new traders understand the most important concepts in trading through clear, visual examples directly on the chart.

This indicator highlights Fair Value Gaps (FVGs): areas where price moved so quickly that it left behind an imbalance. These zones often act like "magnets" for future price action and can become important areas to watch for reactions, continuations, or reversals.

To keep the chart clean and the learning process practical, FVGs are only displayed when they remain relevant, meaning they are not instantly cleared by the very next candle. This helps beginners focus on the imbalances that actually persist and are more likely to matter.

Each FVG is drawn as a zone with a midpoint line and will visually update as price interacts with it:

• Touched when price trades into the zone
  
• Filled when price completely clears the zone
  

These indicators are built to pair perfectly with eBacktesting extension, where traders can practice these concepts step-by-step. Backtesting concepts visually like this is one of the fastest ways to learn, build confidence, and improve trading performance.

Educational use only. Not financial advice.