CT Traders Fair Value Gap

Fair Value Gaps (FVG)

Fair Value Gaps (FVG) highlight areas of imbalance between market participants and have become very popular among technical analysts.
The following script aims to display Fair Value Gaps, along with:

The percentage of gaps filled

The average duration (in bars) before gaps are filled

Users can receive alerts when an FVG is filled using the alerts built into this script.

🔶 USAGE

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In practice, FVGs highlight areas of support (bullish FVG) and areas of resistance (bearish FVG).
Once a gap is filled, suggesting the end of the imbalance, a potential price reversal can be expected.

This approach is more contrarian in nature (against the trend).
Users who prefer a more trend-following approach can use the identification of FVGs as direct signals, entering:

Long positions when a bullish FVG is identified

Short positions when a bearish FVG is identifie