FVG Radar [Mr_Rakun]

How it works

The FVG Radar indicator automatically identifies Fair Value Gaps by analyzing previous price action and creating visual representations of price imbalances. It detects bullish gaps below higher low candles and bearish gaps above lower high candles, marking these areas with colored boxes that display the gap's percentage size.

The indicator also creates a dynamic 'Radar Area' using percentage-based upper and lower bands around the current price. This area helps traders visualize potential price movements and gap interactions, with customizable settings for gap detection sensitivity, minimum gap size, and alert triggers.

Why it may be useful

Fair Value Gaps provide crucial insights into market inefficiencies and potential trading opportunities by revealing moments of price imbalance and market structure weakness. By highlighting these gaps, traders can identify potential reversal zones, support and resistance levels, and areas where price might seek liquidity.

The FVG Radar's visual approach allows traders to quickly recognize and assess price anomalies, making complex market structure analysis more accessible. Its customizable settings enable traders to adapt the indicator to different market conditions and trading styles, enhancing decision-making and risk management strategies.

When to explore it

The FVG Radar is most effective in markets with clear price action and distinct market structure, such as forex, futures, and liquid stock markets. It works best in timeframes that provide sufficient price data to identify meaningful gaps, typically ranging from 5-minute to daily charts.

Traders should use this indicator when seeking to understand market dynamics, identify potential entry and exit points, and confirm trend reversals or continuations. It is particularly useful during periods of market volatility, when price movements are more likely to create and fill significant Fair Value Gaps.

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