Name: LuxAlgo Fair Value Gap Absorption Forex Indicator for MT4 – Smart Market Imbalance Detection for Precise Entries
SKU: 440
Availability: InStock

Description

The Fair Value Gap Absorption Indicator is designed to identify imbalances in fair value gaps and monitor their resolution over time. It visually represents how much of the gap has been mitigated and continues tracking until a new gap forms.

Fair Value Gaps (FVGs) are commonly used by price action traders as indicators of inefficiencies in the market. These gaps typically appear when there’s a surge in buying or selling activity, causing sharp price movements and leaving areas on the chart where trading did not occur evenly—signaling potential imbalances.

🔶 USAGE

A fair value gap happens when there are three candles, and the middle one is much bigger. If the top of the first candle and the bottom of the third candle don’t touch the middle candle, it leaves a space. This space is called a fair value gap.

Price often returns to these gaps to “fill” or fix the imbalance, but this doesn’t always happen right away—it can take a few candles. The indicator shows these gaps and helps you see how much of the gap has been filled so far.

Fair value gaps often attract the price like a magnet. Many traders wait for the price to come back to the gap and fill it before continuing in the same direction as the trend.

🔶 SETTINGS

🔹Fair Value Gaps

Fair Value Gap Width Filter: Sets the multiplier used to filter gaps by size. For more information, check the tooltip next to this setting.
Bullish Imbalance and Mitigation Colors: Lets you choose the colors for bullish gap zones and their mitigation progress.
Bearish Imbalance and Mitigation Colors: Allows you to customize the colors for bearish gaps and how they are being filled.
Show Mitigation Percentage: Enables a display showing how much of each gap has been filled, in percentage form.
Show Past Fair Value Gaps: Turns on or off the view of older fair value gaps on the chart.

🔶 LIMITATIONS

Keep in mind that filtering won’t work for the initial 144 candles, as the ATR value—required for the filtering process—is not yet available during that period.