FVG Chain (Consecutive Fair Value Gaps / Imbalances)

This indicator detects fair value gaps that are created out of the touch of older fair value gaps, hence creating an "FVG chain".

It counts +1 for the chain whenever a new price leg's FVG is touched.

You can use the current FVG Chain count, as well as the high, low, and price leg high/low of the current FVG as input source in external indicators. Check the data window to see the plot values.

How FVGs are detected:
Bullish: The low of the current confirmed bar is above the high of 2 bars back.
Bearish: The high of the current confirmed bar is below the low of 2 bars back.

A bullish FVG chain is broken if:

• The current FVG's price leg low is broken.
  
• The previous bar closed below the FVG, and the current confirmed bar closed below the previous bar.
  

A bearish FVG chain is broken if:

• The current FVG's price leg high is broken.
  
• The previous bar closed above the FVG, and the current confirmed bar closed above the previous bar.