stelaraX - Fair Value Gap

stelaraX – Fair Value Gap

stelaraX – Fair Value Gap is a price-structure indicator designed to identify market imbalances caused by strong impulsive moves. It highlights gaps between candles where price moved aggressively, leaving inefficiently traded zones that may later act as reaction areas.

This indicator is part of the stelaraX ecosystem, focused on clean technical analysis and AI-supported chart evaluation
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Core logic

The Fair Value Gap (FVG) logic detects three-candle imbalances where the current candle does not overlap with the range two candles prior, creating a price gap.

Key principles:

* a bullish FVG forms when the current low is above the high two bars back
* a bearish FVG forms when the current high is below the low two bars back
* the middle candle must confirm directional intent
* detected gaps define imbalance zones between prior and current price ranges
* zones extend forward for a configurable number of bars
* optional logic allows tracking whether gaps become filled

Bullish FVGs represent upward imbalance zones, while bearish FVGs represent downward imbalance zones.

Visualization

The script plots:

* colored imbalance boxes directly on the price chart
* separate colors for bullish and bearish FVG zones
* forward extension of each gap zone for contextual analysis
* triangle markers highlighting the origin candle of each FVG
* alert conditions for bullish and bearish FVG detection

This visual framework makes institutional-style imbalance zones immediately visible.

Use case

This indicator is intended for:

* identifying liquidity inefficiencies and imbalance zones
* mapping potential retracement and mitigation areas
* supporting Smart Money Concepts (SMC) analysis
* structuring entries near unfilled imbalance zones
* combining with structure breaks and liquidity concepts

It is particularly effective when used with market structure, order flow logic, and AI-assisted chart evaluation.

Disclaimer

This indicator is provided for educational and technical analysis purposes only and does not constitute financial advice or trading recommendations. All trading decisions and risk management remain the responsibility of the user.