The FIMS Fair Value Gap (FVG) is an advanced technical analysis indicator designed to identify and visualize Fair Value Gaps (FVGs) in financial markets. These gaps represent areas of price inefficiency that traders use to anticipate potential reversals, continuations, or liquidity zones. This indicator provides clear visuals, customizable settings, and multiple invalidation methods, making it highly versatile for diverse trading strategies.
Key Features 1. Gap Detection Bullish Fair Value Gap: A gap forms when the current low is higher than the high two bars prior. Bearish Fair Value Gap: A gap forms when the current high is lower than the low two bars prior. Automatically creates visual markers for detected gaps. 2. Customizable Invalidation Settings Invalidation Outcome Options: Stop Updating Gap: Keeps the gap displayed but does not update it further. Delete Gap: Removes the gap entirely once invalidation criteria are met. Invalidation Methods: Gap Fill: Invalidation occurs when the gap is completely filled by price action. Number of Breakouts: Tracks a specific number of price flips above or below the gap before invalidating it. Age of Gap: Removes gaps that exceed a user-defined number of bars. 3. Customizable Visualizations Color Settings: Bullish gaps use green tones for borders and background. Bearish gaps use red tones for borders and background. Midline: A dashed line divides the gap at the midpoint for additional precision. Line Widths: Adjustable for both border and midline to suit individual chart preferences. 4. Dynamic Updates Gaps extend horizontally with each new bar. Updates occur based on the chosen invalidation method, ensuring gaps remain relevant to current market conditions. 5. Alerts Configurable alert conditions for various events: New Gap Formation: Alerts for newly detected bullish or bearish gaps. Gap Filling: Alerts when gaps are partially or completely filled. Breakouts: Alerts for upside or downside breakouts beyond the gap. Invalidation Events: Alerts for gap invalidation based on user-defined methods. Price Inside Gap: Alerts when the price enters the gap zone. 6. Interactive Components Midline and bounding lines adjust dynamically when gaps are partially filled. Provides real-time feedback on price interactions with gaps, enhancing decision-making. Applications Liquidity Zones: Identify potential areas of market interest where price may return to fill gaps. Trend Continuation and Reversals: Use gap zones as key levels for price retracements or trend reversals. Risk Management: Leverage gaps for setting stop-loss and take-profit levels. Scalping and Intraday Trading: Benefit from short-term opportunities around gap areas. Customization Options Cosmetic Adjustments: Tailor the appearance of the indicator to blend seamlessly with your chart. Alert Configurations: Flexible alerts to stay informed of critical market events without constant monitoring. Invalidation Methods: Adapt the behavior of the indicator to align with your trading approach.