[ICT Sebo] FVG

Overview

This indicator identifies and visualizes Fair Value Gaps based on three-bar price imbalances. It highlights bullish and bearish gaps that exceed a configurable minimum size, allowing traders to focus on structurally relevant market inefficiencies.

The script is designed as a lightweight Fair Value Gap visualization tool and does not generate trade signals.

How it works

A Fair Value Gap is detected when a three-candle sequence creates a price imbalance between candle extremes. A bullish gap is identified when the high from two bars ago is below the current low. A bearish gap is identified when the low from two bars ago is above the current high.

To reduce noise, each gap is validated using a minimum size filter calculated as a percentage of recent price. Only gaps that meet or exceed this threshold are displayed.

Visualization

When a valid Fair Value Gap is detected, the gap area is highlighted using a shaded box that extends forward for a user-defined number of bars. A dashed midpoint line is drawn to represent the equilibrium level of the gap.

Bullish gaps are displayed in green and bearish gaps are displayed in red.

Intended use

This tool supports Fair Value Gap identification, market inefficiency analysis and ICT-style imbalance observation. It is suitable for intraday and short-term analysis and should be used in combination with broader market context and risk management.

Notes

This indicator does not predict price direction, does not provide entry or exit signals and is intended purely as a visual reference.