Fair Value Gap AB

Fair Value Gap AB (FVG-AB) identifies and visualizes Fair Value Gaps (FVGs) — areas of price imbalance created by strong directional moves where market participants were unable to transact fairly.

These imbalances often act as areas of interest where price may react in the future. The script highlights both bullish FVGs (demand imbalances) and bearish FVGs (supply imbalances) using a volatility-normalized (ATR-based) filter, ensuring that only meaningful gaps are displayed.

The script also tracks:

The number of detected bullish and bearish FVGs

Optional mitigation levels and unmitigated zones for further analysis

Designed with non-repainting logic and optional multi-timeframe support, FVG-AB is suitable for live market analysis and rule-based trading systems.


KEY FEATURES

✅ ATR-normalized FVG detection (volatility aware)

✅ Non-repainting logic (lookahead disabled)

✅ Bullish & Bearish FVG identification

✅ Optional dynamic or fixed FVG zones

✅ Multi-timeframe FVG support

✅ Alert support for FVG creation and mitigation


Fair Value Gaps indicate price imbalance, not guaranteed reversals or entries.
They should be used as areas of interest, not standalone buy/sell signals.


Use FVGs in the direction of the higher-timeframe trend:

In an uptrend:

✅ Focus on bullish FVGs

✅ Look for price reactions when your normal setup appears near the FVG

In a downtrend:

✅ Focus on bearish FVGs

✅ Use them as resistance zones for short setups


USAGE

Identify the higher-timeframe trend

Mark relevant HTF FVG zones

Wait for your regular entry signal

Use the FVG as confluence, not confirmation

Manage risk independently of the FVG

⚠️ DISCLAIMER

This script is an analytical tool and does not constitute trading advice.
Users are responsible for applying proper risk management and discipline.