stelaraX - Fair Value Gap

stelaraX – Fair Value Gap

stelaraX – Fair Value Gap is a technical analysis indicator designed to detect, visualize, and manage Fair Value Gaps (FVGs) using a strict three-candle imbalance model. The script identifies bullish and bearish gaps, draws them as zones on the chart, and tracks their mitigation status over time.

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Core logic

The indicator detects Fair Value Gaps using a three-bar condition:

* bullish FVG when the current low is above the high from two bars ago
* bearish FVG when the current high is below the low from two bars ago

Detected gaps are filtered using minimum size requirements:

* minimum size in ticks
* minimum size as a percentage of price

Each FVG stores its top and bottom boundaries, its midpoint level (Consequent Encroachment), the creation bar, and its current state.


Consequent Encroachment and mitigation

The script can optionally plot the Consequent Encroachment (CE) level, defined as the midpoint of the gap.

Mitigation tracking is supported and can be defined as:

* Touch
* 50 percent retracement to the CE level
* Full fill of the gap

When mitigation occurs, the FVG can:

* remain visible in a mitigated state
* be deleted automatically
* stop extending and close at the mitigation bar

Mitigation styling uses a dedicated color scheme to clearly separate active and mitigated gaps.


Visualization

FVGs are drawn directly on the chart as colored zones:

* bullish FVGs are displayed in green tones
* bearish FVGs are displayed in red tones

Optional features include:

* CE level line with configurable line style
* FVG labels
* automatic extension of active gaps
* configurable maximum age and maximum number of displayed gaps

All colors and display settings are fully customizable.


Dashboard

An optional on-chart dashboard provides a real-time overview of:

* total bullish and bearish FVGs
* mitigated bullish and bearish FVGs
* active (unmitigated) FVGs
* mitigation percentages

Dashboard position and text size are configurable.


Alerts

Alert conditions are available for:

* newly detected bullish FVGs
* newly detected bearish FVGs

Additional real-time alerts can be triggered when an FVG is mitigated.


Use case

This indicator is intended for:

* imbalance and fair value gap mapping
* identifying potential reaction zones and retracement areas
* tracking gap mitigation behavior over time
* multi-timeframe confluence analysis

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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.