FVG Oscillator (OmegaTools) / Owl of Profit remake

FVG Oscillator (OmegaTools)

Big thanks to OmegaTools for providing this strategy and making it available under the Mozilla Public License 2.0! This Pine Script™ code is subject to the terms of the license at mozilla.org/MPL/2.0/.

This strategy leverages Fair Value Gaps (FVG) to detect potential bullish and bearish trading opportunities, combining price gaps and volume analysis for precision.

Features:
FVG Detection:
Bullish FVG (BFVG): Identifies price gaps with upward momentum.
Bearish FVG (SFVG): Identifies price gaps with downward momentum.
Additional Conditions:
Requires confirmation via volume or significant gap size.
Dynamic Count:
Tracks bullish and bearish FVG counts over a customizable 50-bar lookback period.
Normalized Gap Values:
Displays weighted bullish and bearish FVG patterns for better visualization.
Entry and Exit Logic:
Buy Signal: Triggered when a bullish FVG meets verification criteria (volume or significant gap).
Sell Signal: Triggered when a bearish FVG meets verification criteria.
Automatic position management ensures existing positions are closed before entering new ones.
Visualization:
Plots bullish and bearish FVG counts and highlights areas above and below zero.
Displays normalized gap widths as histograms for both long and short patterns.
This strategy provides a robust framework for detecting and trading fair value gaps, making it ideal for traders seeking a gap-based methodology. Use it for backtesting or customize it further for your trading style.

Visit my website for more tools and strategies: bybitindicators.com

Happy trading!