Bull/Bear FVG Density Ratio

This indicator tracks the directional frequency of Fair Value Gaps (FVGs) over a configurable lookback window, offering a clean, responsive measure of market imbalance.

🔍 What It Does:

Detects bullish and bearish FVGs using a 3-bar displacement logic

Calculates the ratio of FVGs to candles over the last N bars

Plots separate density curves for bullish and bearish FVGs

Includes a threshold line to help identify regime shifts (e.g., drought vs spate)

📈 How to Use:

Use rising density to confirm trend strength or breakout momentum

Watch for crossovers above the threshold to signal active imbalance regimes

Combine with price action or volume overlays for high-confluence setups

⚙️ Inputs:

Lookback Window: Number of candles used to calculate FVG density

Threshold: Visual guide for regime classification (default: 0.2)

This tool is ideal for traders who want to move beyond symptomatic signals and model structural causality. It pairs well with lifecycle scoring, retest velocity, and HTF overlays.