Imbalance (FVG)

Indicator Description

This script is designed to automatically identify and visualize Fair Value Gaps (FVGs), also known as Imbalances, on your chart. An FVG is a key price action concept that highlights areas where the price moved swiftly, leaving a gap behind. This indicator is simple to use and fully customizable, making it an excellent tool for both novice and experienced traders.

Key Features

• Automatic Detection: The indicator scans the market in real-time, automatically drawing FVG zones for both Bullish and Bearish moves.
  
  
• Mitigation Tracking: When the price returns to an FVG zone, the indicator automatically marks it as "mitigated" (filled) by changing its color and style. This provides a clear signal that the imbalance has been neutralized.
  
  
• Extend Zones Into the Future: Unmitigated FVG zones are automatically extended into the future, allowing them to be used as potential future support or resistance levels.
  
  
• Full Customization: The user has complete control over the indicator's appearance. You can change the colors for bullish, bearish, and mitigated zones, as well as toggle their visibility on and off.
  
  
• Performance Optimization: A built-in limit for the number of drawn objects prevents chart clutter and avoids errors from TradingView's drawing limits, ensuring smooth performance.
  

How to Use?

FVG zones can be used in various ways, including:

• Price Magnets: Markets often tend to revert to "fill" these gaps.
  
  
• Potential Entry Points: Price entering an FVG zone can present an opportunity to open a position, especially if confirming signals appear.
  
  
• Support/Resistance Zones: Unfilled gaps can act as strong, dynamic levels of support or resistance.