Structure
Fair Value Gap Finder
Finds three candle imbalances, tracks each gap until price fills it, and greys out the ones that are done.
A fair value gap is a three candle pattern in which the middle candle moves quickly enough that the wicks either side fail to overlap, leaving an area that never traded properly. Price returns to those areas more often than chance would suggest.
Every qualifying imbalance is found and held on the chart while it remains open. Mitigation is measured rather than assumed: you set the percentage of the gap that has to fill before it counts as mitigated, and whether a wick or a close does the filling. Mitigated gaps either grey out or disappear, depending on how you prefer to read a chart.
A minimum gap size, expressed as a percentage of price, keeps low timeframe noise from filling the screen with gaps nobody will ever trade.
How to read it
- Unfilled gaps beneath price in an uptrend are the obvious pullback targets.
- Larger gaps fill less often and more slowly than small ones.
- A gap that forms at a session level deserves more attention than one in the middle of a range.
Questions
What counts as filled?
The share of the gap you specify, fifty percent by default, reached by a wick or a close as you prefer.
How many gaps are tracked?
Up to forty per side by default, with the oldest cleared first.
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All 15 GapAlgo indicators are public on TradingView. Add them to a chart and they work.
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