Fair Value Gap Screener | Flux Charts

How it works

The Fair Value Gap (FVG) Screener detects market imbalances by analyzing specific chart formations that represent price gaps. It scans up to 5 different tickers simultaneously, identifying zones where price movement creates an unexpected market condition.

The algorithm examines three consecutive price bars to detect these gaps, categorizing them based on their current status: far from the gap, approaching the gap, or inside the gap. It also tracks additional metrics like the number of retests and the percentage of gap consumption, providing traders with comprehensive insights into potential trading opportunities.

Why it may be useful

Fair Value Gap analysis offers traders a unique perspective on market dynamics by highlighting potential areas of price imbalance and market inefficiency. By identifying these zones, traders can gain insights into potential support and resistance levels that might not be visible through traditional technical analysis.

The screener's ability to provide detailed information such as retest counts, consumption percentages, and volume characteristics gives traders a more nuanced understanding of market structure. This additional context can help improve trade entry and exit decisions by providing a more comprehensive view of potential price movements.

When to explore it

The Fair Value Gap Screener is most effective in markets with clear price movements and identifiable imbalances, such as stocks, forex, and cryptocurrency markets. It works best during periods of moderate to high market volatility, where price gaps are more likely to form and provide meaningful trading signals.

Traders should use this tool when seeking to identify potential entry and exit points based on market inefficiencies. It is particularly useful for traders who want to understand market structure beyond traditional support and resistance levels, and who are interested in capturing short to medium-term trading opportunities.

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