Fair Value Gaps - Significant Displacement
Fair Value Gaps - Significant Displacement is designed to filter out many of the small, low-quality imbalances that can clutter a chart and instead focus on FVGs created during stronger displacement.
Rather than marking every textbook three-candle imbalance, the script evaluates gap size, relative volume, candle displacement, and candle structure before displaying an FVG.
The goal is a cleaner chart that highlights stronger imbalances for intraday price-action analysis.
🔎 HOW FAIR VALUE GAPS ARE DETECTED
The indicator uses the traditional three-candle Fair Value Gap structure.
A Bullish FVG forms when:
The current candle's low remains above the high from two candles earlier.
This creates an untraded price range between those candles.
A Bearish FVG forms when:
The current candle's high remains below the low from two candles earlier.
This leaves an imbalance between the surrounding candles.
The middle candle is treated as the displacement candle responsible for creating the imbalance.
⚡ SIGNIFICANT DISPLACEMENT FILTERING
The script does not automatically display every FVG.
For an imbalance to qualify, the displacement must meet several quality requirements.
RELATIVE VOLUME
The displacement candle must trade with meaningful volume relative to recent activity.
Default: Minimum Relative Volume: 1.25×
The candle's volume is compared with its recent average volume rather than using a fixed volume number, allowing the filter to adapt across different markets.
MINIMUM FVG SIZE
Very small imbalances are filtered out using ATR.
Default: Minimum FVG Size: 0.10 ATR
This prevents insignificant gaps from being displayed simply because a technical three-candle imbalance exists.
DISPLACEMENT BODY SIZE
The middle candle must show meaningful price expansion.
Default: Minimum Displacement Body: 0.70 ATR
This helps distinguish genuine displacement from ordinary candles that happen to create a small gap.
CANDLE BODY QUALITY
The displacement candle's body must represent a meaningful portion of its total range.
Default: Minimum Body Percentage: 60%
This reduces FVGs produced by candles dominated by large wicks or limited directional body expansion.
DIRECTIONAL DISPLACEMENT
By default:
This keeps the imbalance aligned with the direction of the move that created it.
🟢 BULLISH FVGs
Bullish Fair Value Gaps are displayed in green by default.
They represent an upside displacement that left an imbalance below current price.
Bullish and bearish FVG colors can both be customized from the indicator settings.
🔴 BEARISH FVGs
Bearish Fair Value Gaps are displayed in red by default.
They represent downside displacement that left an imbalance above current price.
➗ 50% FVG MIDPOINT
Each FVG includes an optional 50% midpoint.
The midpoint is enabled by default and appears as a dashed line through the center of the imbalance.
This can be useful for traders who monitor partial mitigation or reactions around the equilibrium of an FVG.
The midpoint can be disabled from the settings for a cleaner chart.
✅ FULL FVG FILL
FVGs remain active until the entire imbalance has been filled.
For a bullish FVG, price must trade through the lower boundary of the gap.
For a bearish FVG, price must trade through the upper boundary.
Once the FVG is fully filled, the box is automatically removed from the chart.
This prevents already-resolved imbalances from continuing to clutter the display.
🕒 TRADING-DAY EXTENSION
Active FVGs extend across the trading day in which they formed.
At the beginning of the next trading day, remaining historical FVGs are capped at the end of their original session instead of extending indefinitely across future price action.
This keeps the visual history of previous sessions while maintaining a clean current chart.
📅 HISTORICAL FVG LOOKBACK
Historical Fair Value Gaps can remain visible for a selected number of trading days.
Available settings:
Default: 3 Trading Days
This allows traders to review previous-session imbalances without permanently accumulating old zones.
👁️ DISPLAY CONTROLS
The indicator includes several visual controls:
The default appearance is designed to remain clean while still making important imbalances easy to identify.
🔔 ALERTS
Alert conditions are included for:
These can be used through TradingView's alert system to monitor new displacement imbalances and subsequent fills.
🧠 HOW TO INTERPRET THE INDICATOR
An FVG should not automatically be treated as an entry signal.
The indicator identifies areas where significant displacement created an imbalance.
The script is intentionally focused on identifying the imbalance itself rather than combining unrelated trading systems into one indicator.
⏱️ SIGNAL CONFIRMATION
FVGs are confirmed using closed candles.
A Fair Value Gap is only created once the three-candle structure is confirmed.
After confirmation, the FVG may remain active until fully filled or until it falls outside the selected historical lookback.
📌 SUMMARY
Fair Value Gaps - Significant Displacement is built for traders who want FVG analysis without filling their chart with every minor imbalance.
The indicator combines:
Three-candle FVG structure + relative volume + ATR gap size + displacement strength + candle quality + full-fill tracking to focus attention on stronger Fair Value Gaps while keeping the chart clean and readable.
Rather than marking every textbook three-candle imbalance, the script evaluates gap size, relative volume, candle displacement, and candle structure before displaying an FVG.
The goal is a cleaner chart that highlights stronger imbalances for intraday price-action analysis.
🔎 HOW FAIR VALUE GAPS ARE DETECTED
The indicator uses the traditional three-candle Fair Value Gap structure.
A Bullish FVG forms when:
The current candle's low remains above the high from two candles earlier.
This creates an untraded price range between those candles.
A Bearish FVG forms when:
The current candle's high remains below the low from two candles earlier.
This leaves an imbalance between the surrounding candles.
The middle candle is treated as the displacement candle responsible for creating the imbalance.
⚡ SIGNIFICANT DISPLACEMENT FILTERING
The script does not automatically display every FVG.
For an imbalance to qualify, the displacement must meet several quality requirements.
RELATIVE VOLUME
The displacement candle must trade with meaningful volume relative to recent activity.
Default: Minimum Relative Volume: 1.25×
The candle's volume is compared with its recent average volume rather than using a fixed volume number, allowing the filter to adapt across different markets.
MINIMUM FVG SIZE
Very small imbalances are filtered out using ATR.
Default: Minimum FVG Size: 0.10 ATR
This prevents insignificant gaps from being displayed simply because a technical three-candle imbalance exists.
DISPLACEMENT BODY SIZE
The middle candle must show meaningful price expansion.
Default: Minimum Displacement Body: 0.70 ATR
This helps distinguish genuine displacement from ordinary candles that happen to create a small gap.
CANDLE BODY QUALITY
The displacement candle's body must represent a meaningful portion of its total range.
Default: Minimum Body Percentage: 60%
This reduces FVGs produced by candles dominated by large wicks or limited directional body expansion.
DIRECTIONAL DISPLACEMENT
By default:
- Bullish FVGs require a bullish displacement candle
- Bearish FVGs require a bearish displacement candle
This keeps the imbalance aligned with the direction of the move that created it.
🟢 BULLISH FVGs
Bullish Fair Value Gaps are displayed in green by default.
They represent an upside displacement that left an imbalance below current price.
Bullish and bearish FVG colors can both be customized from the indicator settings.
🔴 BEARISH FVGs
Bearish Fair Value Gaps are displayed in red by default.
They represent downside displacement that left an imbalance above current price.
➗ 50% FVG MIDPOINT
Each FVG includes an optional 50% midpoint.
The midpoint is enabled by default and appears as a dashed line through the center of the imbalance.
This can be useful for traders who monitor partial mitigation or reactions around the equilibrium of an FVG.
The midpoint can be disabled from the settings for a cleaner chart.
✅ FULL FVG FILL
FVGs remain active until the entire imbalance has been filled.
For a bullish FVG, price must trade through the lower boundary of the gap.
For a bearish FVG, price must trade through the upper boundary.
Once the FVG is fully filled, the box is automatically removed from the chart.
This prevents already-resolved imbalances from continuing to clutter the display.
🕒 TRADING-DAY EXTENSION
Active FVGs extend across the trading day in which they formed.
At the beginning of the next trading day, remaining historical FVGs are capped at the end of their original session instead of extending indefinitely across future price action.
This keeps the visual history of previous sessions while maintaining a clean current chart.
📅 HISTORICAL FVG LOOKBACK
Historical Fair Value Gaps can remain visible for a selected number of trading days.
Available settings:
- 1 Day
- 3 Days
- 5 Days
- 10 Days
Default: 3 Trading Days
This allows traders to review previous-session imbalances without permanently accumulating old zones.
👁️ DISPLAY CONTROLS
The indicator includes several visual controls:
- Show / Hide Bullish FVGs
- Show / Hide Bearish FVGs
- Custom Bullish FVG Color
- Custom Bearish FVG Color
- Box Transparency
- Border Transparency
- Show / Hide FVG Text
- Show / Hide 50% Midpoint
- Midpoint Transparency
- Historical Lookback
The default appearance is designed to remain clean while still making important imbalances easy to identify.
🔔 ALERTS
Alert conditions are included for:
- New Bullish FVG
- New Bearish FVG
- Bullish FVG Fully Filled
- Bearish FVG Fully Filled
These can be used through TradingView's alert system to monitor new displacement imbalances and subsequent fills.
🧠 HOW TO INTERPRET THE INDICATOR
An FVG should not automatically be treated as an entry signal.
The indicator identifies areas where significant displacement created an imbalance.
The script is intentionally focused on identifying the imbalance itself rather than combining unrelated trading systems into one indicator.
⏱️ SIGNAL CONFIRMATION
FVGs are confirmed using closed candles.
A Fair Value Gap is only created once the three-candle structure is confirmed.
After confirmation, the FVG may remain active until fully filled or until it falls outside the selected historical lookback.
📌 SUMMARY
Fair Value Gaps - Significant Displacement is built for traders who want FVG analysis without filling their chart with every minor imbalance.
The indicator combines:
Three-candle FVG structure + relative volume + ATR gap size + displacement strength + candle quality + full-fill tracking to focus attention on stronger Fair Value Gaps while keeping the chart clean and readable.
Second Bell — Trading tools built for clarity and market context.
secondbelltrading.com
secondbelltrading.com
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน
Second Bell — Trading tools built for clarity and market context.
secondbelltrading.com
secondbelltrading.com
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน