Higher Time Frame Fair Value Gap [ZeroHeroTrading]

18. Feb.

A fair value gap (FVG) highlights an imbalance area between market participants, and has become popular for technical analysis among price action traders.

A bullish (respectively bearish) fair value gap appears in a triple-candle pattern when there is a large candle whose previous candle’s high (respectively low) and subsequent candle’s low (respectively high) do not fully overlap the large candle. The space between these wicks is known as the fair value gap.

The following script aims at identifying higher timeframe FVG's within a lower timeframe chart. As such, it offers a unique perspective on the formation of FVG's by combining the multiple timeframe data points in the same context.

You can change the indicator settings as you see fit to achieve the best results for your use case.

Features

• It draws higher timeframe bullish and bearish FVG's on the chart.
  
• For bullish (respectively bearish) higher timeframe FVG's, it adds the buying (respectively selling) pressure as a percentage ratio of the up (respectively down) volume of the second higher timeframe bar out of the total up (respectively down) volume of the first two higher timeframe bars.
  
• It adds a right extended trendline from the most recent lowest low (respectively highest high) to the top (respectively bottom) of the higher timeframe bullish (respectively bearish) FVG.
  
• It detects and displays higher timeframe FVG's as early as one starts forming.
  
• It detects and displays lower timeframe (i.e. chart's timeframe) FVG's upon confirmation.
  
• It allows for skipping inside first bars when evaluating FVG's.
  
• It allows for dismissing higher timeframe FVG's if there is no update for any period of the chart's timeframe. For instance, this can occur at lower timeframes during low trading activity periods such as extended hours.
  

Settings

• Higher Time Frame FVG dropdown: Selects the higher timeframe to run the FVG detection on. Default is 15 minutes. It must be higher than, and a multiple of, the chart's timeframe.
  
• Higher Time Frame FVG color select: Selects the color of the text to display for higher timeframe FVG's. Default is black.
  
• Show Trend Line checkbox: Turns on/off trendline display. Default is on.
  
• Show Lower Time Frame FVG checkbox: Turns on/off lower timeframe (i.e. chart's timeframe) FVG detection. Default is on.
  
• Show Lower Time Frame FVG color select: Selects the color of the border for lower timeframe (i.e. chart's timeframe) FVG's. Default is white.
  
• Include Inside Bars checkbox: Turns on/off the inclusion of inside first bars when evaluating FVG's. Default is on.
  
• With Consistent Updates checkbox: Turns on/off consistent updates requirement. Default is on.
  

29. März

Versionshinweise

New Features

• It displays higher timeframe FVG levels up until mitigation
  
• It supports alerting when a higher timeframe FVG has formed
  

6. Apr.

Versionshinweise

• Minor runtime optimization
  

11. Apr.

Versionshinweise

New Feature

• It supports alerting when the price has traded into a non-mitigated higher timeframe fair value gap.
  

New Settings

• FVG Formation checkbox: Enables/Disables alerting when a higher timeframe fair value gap has formed. Alerts must be re-created for the setting to apply.
  
• FVG Price Action checkbox: Enables/Disables alerting when the price has traded into a non-mitigated higher timeframe fair value gap. Alerts must be re-created for the setting to apply.