Fair Value Gap (FVG) Calculation

Overview:

• Purpose: Identifies gaps between candlestick patterns where the market has moved rapidly, leaving behind areas of potential price inefficiency.
• Functionality: Detects top and bottom imbalances and highlights these areas using shaded boxes on the chart.

Key Parameters:

• Show FVG: Enable or disable the Fair Value Gap display.
• Number of FVG: Set the number of FVG areas to display on the chart.
• FVG Color: Customize the color of the FVG boxes.

Usage:

• Identifying Price Inefficiencies: Traders can use FVGs to spot areas where the price may return to ‘fill the gap.’
• Support and Resistance: FVG zones can act as dynamic support or resistance levels.