Imbalance (FVG)

9월 16일

Indicator Description

This script is designed to automatically identify and visualize Fair Value Gaps (FVGs), also known as Imbalances, on your chart. An FVG is a key price action concept that highlights areas where the price moved swiftly, leaving a gap behind. This indicator is simple to use and fully customizable, making it an excellent tool for both novice and experienced traders.

Key Features

• Automatic Detection: The indicator scans the market in real-time, automatically drawing FVG zones for both Bullish and Bearish moves.
  
  
• Mitigation Tracking: When the price returns to an FVG zone, the indicator automatically marks it as "mitigated" (filled) by changing its color and style. This provides a clear signal that the imbalance has been neutralized.
  
  
• Extend Zones Into the Future: Unmitigated FVG zones are automatically extended into the future, allowing them to be used as potential future support or resistance levels.
  
  
• Full Customization: The user has complete control over the indicator's appearance. You can change the colors for bullish, bearish, and mitigated zones, as well as toggle their visibility on and off.
  
  
• Performance Optimization: A built-in limit for the number of drawn objects prevents chart clutter and avoids errors from TradingView's drawing limits, ensuring smooth performance.
  

How to Use?

FVG zones can be used in various ways, including:

• Price Magnets: Markets often tend to revert to "fill" these gaps.
  
  
• Potential Entry Points: Price entering an FVG zone can present an opportunity to open a position, especially if confirming signals appear.
  
  
• Support/Resistance Zones: Unfilled gaps can act as strong, dynamic levels of support or resistance.
  

9월 23일

릴리즈 노트

*Updated script description to comply with House Rules.
*Added a detailed explanation of the FVG identification methodology, main features, and usage instructions for traders.

This indicator automatically identifies and displays areas of price imbalance, more commonly known as Fair Value Gaps (FVG), on the chart. These zones often act as a magnet for price and can serve as key support or resistance levels. The indicator is designed to be simple, efficient, and fully customizable.

How It Works: The Concept
A Fair Value Gap (FVG) is a concept derived from Smart Money Concepts (SMC) that describes a market inefficiency. The indicator identifies these zones based on the classic three-candle pattern:

• 📈 Bullish FVG: Identified when the high of the first candle is lower than the low of the third candle. The resulting gap on the middle candle (candle #2) represents a zone where buying pressure was dominant, and there was a lack of selling pressure. The indicator highlights this zone in green.
  
• 📉 Bearish FVG: Identified when the low of the first candle is higher than the high of the third candle. This gap signifies aggressive selling that was not balanced by buyers. This zone is marked in red.
  

The indicator tracks these zones and monitors when the price returns to them. Once the price "fills" the gap (touches its boundary), the zone is considered mitigated, and its color changes to gray.

Main Features

• Automatic Detection: The script automatically scans the chart for FVG patterns and draws them in real-time.
  
• Zone Visualization: Clean and clear boxes representing demand (Bullish FVG) and supply (Bearish FVG) zones.
  
• Mitigation Tracking: The color of a zone automatically changes after it has been filled by price, allowing for an easy distinction between active and already-tested gaps.
  
• Zone Extension: An option to extend unmitigated zones into the future, making it easier to see them as potential support/resistance levels.
  
• Full Customization: Ability to toggle the visibility of bullish, bearish, and mitigated FVGs. The user can fully customize colors, label size, and visibility.
  
• Performance Optimization: A built-in Max FVG Count feature limits the number of objects drawn on the chart, preventing errors and lag related to TradingView's drawing limits.
  

How to Use It

1. Potential Support and Resistance Zones: Unmitigated FVG zones often act as strong, natural S/R levels. The price tends to gravitate back to these areas.
   
2. Entry Points: Traders often look for entry opportunities when the price tests an FVG zone, expecting a reaction and a continuation of the original move.
   
3. Take Profit Targets: FVG zones can also serve as logical targets for open positions. If you are in a long position, the nearest Bearish FVG could be a good place to take profit.
   

Disclaimer: No indicator is a trading system on its own. Always use FVGs in conjunction with other technical analysis tools, such as market structure, liquidity, and premium/discount zones.

Settings
Display Settings:

• Max FVG Count: Sets the maximum number of recent FVGs (separately for bullish and bearish) to be tracked. This prevents exceeding the 500-object limit on the chart.
  
• Show Bullish/Bearish FVG: Toggles the visibility of the specified FVG type.
  
• Extend FVG Into the Future: Toggles the extension of active zones.
  
• Show Mitigated FVG: Decides whether mitigated (gray) zones should remain visible on the chart.
  

Colors:

• Full control over the colors for bullish, bearish, and mitigated zones.