WSITEEE Imbalance/FVG (FAIR VALUE GAP)

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Imbalance/FVG (Fair Value Gap) refers to a price imbalance, representing a range on the chart where little liquidity was provided.

Imbalance implies a strong impulsive movement of a candle, which the price almost always returns to cover.

The best analogy would be to imagine painting a wall with a roller. If you move the roller from top to bottom, what remains on the wall? That’s right, gaps that need to be filled. How do you fill them? Exactly, by moving the roller from bottom to top. The same principle applies to imbalance.

How do you correctly mark an Imbalance?

The first thing we need to find on the chart is three candles, one of which should be impulsive. Next, using the “Fibonacci Retracement” tool, we stretch it from the wick of the first candle to the wick of the last candle.

Imbalance can be used both for determining context and as an entry model. On a higher timeframe, it acts as a point of interest (POI), within which you can look for factors to build a position.

This Pine Script is designed for Smart Money traders who work with Fair Value Gaps (FVG). FVGs are three-candle patterns where the third candle does not fully overlap the first, leaving a gap on the second candle. The script helps to automatically detect these gaps and highlight them on the chart with different colors based on their status and type.

It allows for the visualization of imbalances on the chart, highlighting key zones that can serve as important levels for decision-making. With flexible color and label settings, the script can be tailored to individual needs, enhancing data visualization on the chart.

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Phát hành các Ghi chú

In the updated script, a feature has been added to display Fair Value Gaps (FVGs) only on high-volume bars (HVBs). This option uses the volume's exponential moving average (EMA) and a volume multiplier to identify high-volume bars, which are then highlighted with customizable colors. The script will plot FVGs only when they occur on bars with higher-than-average volume, making it easier to focus on gaps that align with increased trading activity.

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Phát hành các Ghi chú

Update naming and tooltip explanations.