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FVG Rejection Signal

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FVG Rejection Confirmed

FVG Rejection Confirmed is a price action indicator designed to identify high-confluence reversal and continuation opportunities inside Fair Value Gaps (FVGs). It combines Fair Value Gap context, wick rejection, and momentum confirmation into a simple, objective signal.

How It Works

The indicator looks for three conditions:

Step 1: Price enters a Fair Value Gap

The indicator identifies standard three-candle Fair Value Gaps and waits for price to trade back into an active gap.

Step 2: Rejection candle

Once price is inside the Fair Value Gap, the indicator looks for a rejection candle.

A bullish rejection candle must:

* Close bullish.
* Have a lower wick that is larger than its body.

A bearish rejection candle must:

* Close bearish.
* Have an upper wick that is larger than its body.

When these conditions are met, the indicator plots an arrow.

Step 3: Confirmation candle

The very next candle is evaluated for confirmation.

A Buy signal is generated when:

* The previous candle printed a bullish rejection arrow.
* The current candle closes bullish.
* The current candle’s body is larger than the previous candle’s body.

A Sell signal is generated when:

* The previous candle printed a bearish rejection arrow.
* The current candle closes bearish.
* The current candle’s body is larger than the previous candle’s body.

Purpose

The goal of the indicator is to help traders identify moments where:

* Price retraces into a Fair Value Gap.
* The market rejects lower or higher prices.
* Buyers or sellers immediately demonstrate increasing momentum.

Rather than entering solely because price reaches a Fair Value Gap, this indicator waits for both rejection and confirmation before generating a trading signal.

Notes

* Uses the standard three-candle Fair Value Gap definition.
* Signals are only generated after the candle has closed, helping avoid repainting during candle formation.
* Designed as a confirmation tool and should be used alongside market structure, liquidity, higher time frame bias, and sound risk management.

This indicator is intended to provide objective, repeatable signals while keeping the underlying logic simple and transparent.

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