FVG + Swings + Configurable

How it works

The indicator operates by detecting Fair Value Gaps through analyzing price relationships between specific bars. It identifies bullish gaps when the high of bar i-2 is below the current bar's low, and bearish gaps when the low of bar i-2 is above the current bar's high. These gaps are visualized using semi-transparent rectangles that extend from the original gap point.

Additionally, the script tracks swing-high and swing-low pivots by examining three-bar sequences. A swing-high is identified when the middle bar has the highest high, while a swing-low occurs when the middle bar has the lowest low. The indicator then marks these pivots with small dots and monitors breakouts by tracking the most recent swing levels.

Why it may be useful

Fair Value Gaps provide traders with insights into potential market inefficiencies and areas of price imbalance. By highlighting these gaps, traders can identify potential zones of support and resistance where price might react or reverse. The visual representation helps traders quickly recognize market structure and potential trading opportunities.

The swing pivot and breakout tracking mechanism adds another layer of analytical depth, allowing traders to monitor key price levels and detect potential trend changes. By automatically marking pivots and breakouts, the indicator reduces manual analysis time and helps traders focus on critical price action signals.

When to explore it

This indicator is most effective in markets with clear price movements and identifiable market structures. It works particularly well in trending markets where price tends to respect Fair Value Gaps and swing levels. Traders can benefit from using this tool across various timeframes, from short-term scalping to longer-term swing trading strategies.

The indicator is especially useful during periods of market volatility, where quick identification of price gaps and pivot points can provide critical trading insights. Traders should combine this tool with other technical analysis methods and risk management strategies to validate signals and make informed trading decisions.

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