Math by Thomas FVG

How it works

The Math by Thomas FVG indicator uses a three-candle analysis to detect price inefficiencies called Fair Value Gaps. For a bullish FVG, the current candle's low must be above the high of the candle two bars ago, creating a green-shaded box.

Conversely, a bearish FVG occurs when the current candle's high is below the low of the candle two bars ago, marked by a red-shaded box. The indicator dynamically manages up to 50 FVG boxes, automatically removing them when price action fills the gap

Why it may be useful

Fair Value Gaps help traders understand market inefficiencies and identify potential entry and exit points. By highlighting areas where price has not fully balanced, traders can gain insights into market structure and potential price movements.

The indicator provides a visual representation of price gaps, which can signal potential support or resistance zones. This tool is particularly useful for traders focused on price action and Smart Money Concepts, offering a systematic approach to analyzing market dynamics

When to explore it

The Math by Thomas FVG indicator works best in markets with clear price action and moderate volatility. Traders should combine this tool with other technical analysis methods like order blocks, support/resistance levels, or volume analysis for confirmation.

It is most effective in identifying potential trend reversals or continuations. The indicator is particularly useful for day traders and swing traders who rely on price action strategies. Traders should use it alongside other technical indicators to validate signals and reduce false positives

Keep exploring