Fair Value Gap Profiles [AlgoAlpha]

12 小時前

🟠OVERVIEW
This script draws and manages Fair Value Gap (FVG) zones by detecting unfilled gaps in price action and then augmenting them with intra-gap volume profiles from a lower timeframe. It is designed to help traders find potential areas where price may return to fill liquidity voids, and to provide extra detail about volume distribution inside each gap to assess strength and likely mitigation. The script automatically tracks each gap, updates its state over time, and can show which gaps are still unfilled or have been mitigated.

🟠CONCEPTS
A Fair Value Gap is a zone between candles where no trades occurred, often seen as an inefficiency that price later revisits. The script checks each bar to see if a bullish (low above 2-bars-ago high) or bearish (high below 2-bars-ago low) gap has formed, and measures whether the gap’s size exceeds a threshold defined by a volatility-adjusted multiplier of past gap widths (to only detect significantly large gaps). Once a qualified gap is found, it gets recorded and visualized with a box that can stretch forward in time until filled. To add more context, a mini volume profile is built from a lower timeframe’s price and volume data, showing how volume is distributed inside the gap. The lowest-volume subzone is also highlighted using a sliding window scan method to visualise the true gap (area with least trading activity)

🟠FEATURES

1. Visual gap boxes that appear automatically when bullish or bearish fair value gaps are detected on the chart.
   
2. Color-coded zones showing bullish gaps in one color and bearish gaps in another so you can easily see which side the gap favors.
   
3. Volume profile histograms plotted inside each gap using data from a lower timeframe, helping you see where volume concentrated inside the gap area.
   
4. Highlight of the lowest-volume subzone within each gap so you can spot areas price may target when filling the gap.
   
5. Dynamic extension of the gap boxes across the chart until price comes back and fills them, marking them as mitigated.
   
6. Customizable colors and transparency settings for gap boxes, profiles, and low-volume highlights to match your chart style.
   
7. Alerts that notify you when a new gap is created or when price fills an existing gap.
   

🟠USAGE
This indicator helps you find and track unfilled price gaps that often act as magnets for price to revisit. You can use it to spot areas where liquidity may rest and plan entries or exits around these zones.

The colored gap boxes show you exactly where a fair value gap starts and ends, so you can anticipate potential pullbacks or continuations when price approaches them.

The intra-gap volume profile lets you gauge whether the gap was created on strong or thin participation, which can help judge how likely it is to be filled. The highlighted lowest-volume subzone shows where price might accelerate once inside the gap.



Traders often look for entries when price returns to a gap, aiming for a reaction or reversal in that area. You can also combine the mitigation alerts with your trade management to track when gaps have been closed and adjust your bias accordingly. Overall, the tool gives a clear visual reference for imbalance zones that can help structure trades around supply and demand dynamics.

12 小時前

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