Fair Value Gaps [Fax Academy]

FVG [Fax Academy] — Precision Fair Value Gap Detection for Professional Traders

Overview

• Identifies and draws Fair Value Gaps (FVGs) using a refined 3-bar displacement model on the selected timeframe.
  
• Optimized for Forex and Gold, but fully compatible with all instruments and timeframes.
  
• Non-repainting, fast, and engineered to filter only meaningful imbalances.
  
• ATR% or Points-based thresholds ensure cleaner charts; optional “latest only” mode and automatic gap removal on fill.
  

Detection Logic

• Bullish FVG:
  Current low > high from two bars ago, and the prior bar closes above that high at a source-timeframe boundary.
  
• Bearish FVG:
  Current high < low from two bars ago, and the prior bar closes below that low at a source-timeframe boundary.
  
• All boxes anchor using xloc.bar_time for precise alignment with the source timeframe.
  

Inputs

• Source Timeframe: Chart timeframe or any higher TF (1H, 4H, D, etc.)
  
• Show Bullish / Show Bearish: Direction toggles.
  
• Threshold Mode: Points or ATR % filter (dynamic). ATR length is internal; set your preferred percentage.
  
• Min Gap (points): Used when Threshold Mode = Points.
  
• Extend Bars: How many bars the box extends to the right.
  
• Show Latest Only: Only show the most recent gap.
  
• Delete On Fill: Automatically remove gaps once price fully mitigates them.
  
• Colors & Border Width: Fully adjustable styling.
  

How To Use

• Select a Source Timeframe to map higher-TF FVGs onto lower-TF charts (e.g., 4H → 1H/15m).
  
• Use ATR % filtering (10–20% recommended) to eliminate small, irrelevant gaps.
  
• Enable “Latest Only” for a clean chart, or keep full history for multi-mitigation analysis.
  
• Combine with:
  
  • EMA [Fax Academy] for trend + pullback structure.
    
  • Sessions [Fax Academy] for timing and volatility alignment.
    

Reading FVGs

• Unmitigated FVGs can behave like magnets or supply/demand pockets.
  
• In trending markets, fresh FVGs aligned with higher-TF bias offer high-quality continuation entries.
  
• Filled gaps are automatically deleted when “Delete On Fill” is enabled.
  

Defaults

• Bullish = ON, Bearish = ON
  
• Threshold Mode: ATR % (10%)
  
• Extend Bars: 1
  
• Latest Only: OFF
  
• Delete On Fill: ON
  
• Colors: Dark Green (bullish), Dark Red (bearish)
  

Notes

• Non-repainting — all detection occurs only when the source timeframe bar closes.
  
• Works on any chart timeframe with perfect timestamp alignment.
  
• If your chart lacks enough higher-TF bars, extend history or select a lower Source TF.
  

Brand

• Developed by Fax Academy to bring precision, clarity, and professional-grade imbalance analysis to modern trading.
  
• For educational and analytical purposes only — always combine with sound risk management and verification.