Fair Value Gaps

Fair Value Gaps is an indicator drawn over the price chart.

statesmart money

fair-value-gaps.abx

1indicator "Fair Value Gaps"
2pane: price
3
4input keep = 15
5input min_gap = 0.5
6
7state gaps: list<Zone> = []
8
9for gap in fair_value_gaps(min_size: min_gap, new_only: true):
10gaps.push(gap)
11gaps = gaps.filter(g => not g.mitigated).keep_last(keep)
12
13for g in gaps:
14box id: g.id, from: (g.formed_bar, g.top), to: (bar.index, g.bottom), color: if g.bullish then teal.fade(75) else orange.fade(75)
15label if g.bullish then "FVG +" else "FVG -", at: (g.formed_bar, g.mid), color: gray

Watch it run · EURUSD · 1h bars

Sample data. Not a result. The real AlgoBarsX engine ran this exact script on made-up bars, and this replays what it drew and did. It shows no profit or loss, and it says nothing about how the script would do in a real market.

Replay of this script on 150 sample bars: 0 lines drawn.

What this script says

Fair Value Gaps is an indicator drawn over the price chart.

You can change 2 inputs: keep (default 15) and min_gap (default 0.5).

It remembers gaps from one bar to the next.

It calculates gaps as gaps.filter(g => not g.mitigated).keep_last(keep).

On each bar, it goes through each gap in the fair value gaps and adds gap to gaps.

On each bar, it goes through each g in gaps and draws a box and labels if g.bullish then "FVG +" else "FVG -".