FVG

3 gün önce

FVG indicator
A Fair Value Gap is when the price moved very fast without looking back in the short term. Usually this is an indication of smart money plays.

### Basics FVGs ###
Fair value gaps are determined with 3 candlesticks [ naming cs1, cs2 and cs3 ]

• When bullish this is the difference from the cs1 high to the cs3 low, = BISI.
  
• When bearish this is the difference from the cs1 low to the cs3 high, = SIBI.
  

By default it shows SIBI and BISI FVGs those just follow the 2 simplest rules above.
Default colour = blue as this is neutral.
Those FVG drawings should be used to calibrate the following 3 special FVGs.

### Special FVGs ###
Than there are 3 more conditions to define FVG's in more detail
1. Expansion / Breakout FVG
This is when the body of cs3 is more than <input> % of cs2
Default colour = yellow as this is not positive.

2. Rejection / Rejected FVG
This is when the FVG created from cs1 and cs2 is filled for more than <input> % by the move of cs3 (by the wicks).
Default colour = yellow as this is not positive.

3. True FVG
This is when the cs3 after a FVG (that is not expansion or rejection) has a very small body vs wicks. So if the body is smaller than <input> % of the whole cs3. Additionally the cs3 body has to close above cs2 high when BISI and cs3 body has to close below cs2 low when SIBI.
Default colour = green as this is positive.

### Visuals ###

• You can change the colouring of all the FVGs.
  
• You can change which FVGs you want to see.
  

### Technical Calibration ###

• The % of the move of cs3 back into the FVG of cs1 & cs2 to determine if a FVG is an expansion.
  
• Thee % of the body of cs3 compared to cs2 to determine if a FVG is a rejection.
  
• Body % of cs3 that complements to determine if a FVG is a true FVG.
  

### How to use ####
This is not providing any trades on itself it is rather a complement for people that are trading with fair value gaps to quantify their approach in the framework described above.
The indicator can be used on all timeframes and tickers. It is advised to approach any FVG strategy by searching confluence on multiple timeframes.

3 gün önce

Sürüm Notları

Updated bar colouring bug, for each of the 3 specific FVGs to show it colours the cs3 in the corresponding colour as it is mainly determined by that candlestick.