FVG Block SMC

FVG Analysis — Fair Value Gap detection and tracking

FVG Analysis is an indicator that automatically finds price inefficiency zones on the chart — known in Smart Money Concepts as Fair Value Gaps — and tracks their life cycle from formation to mitigation. These zones appear where the market moved so impulsively that it left behind a price gap not filled by the neighboring candles, and it is precisely to such areas that price often returns later to restore equilibrium.

At the core of the indicator is the classic three-candle gap definition. An FVG is registered on the middle bar of three when an unfilled space remains between the wicks of the first and third candles, and the impulse bar itself confirms the direction: for a bearish gap, the low of the older candle ends up above the high of the newer one with a bearish middle bar; for a bullish gap, the mirror image. This approach filters out random noise and highlights only the structurally significant gaps.

Each detected zone is drawn on the chart as a rectangle: bearish and bullish gaps are colored in their own configurable colors, and the zones can be filled and placed in the background so they don't obscure the price action. The rectangle extends from the moment the gap formed to the current time, clearly showing how long the zone has remained unmitigated and how close price has come to it.

Particular attention is paid to tracking the mitigation of zones. The indicator continuously checks whether price has entered a previously detected gap and considers the zone mitigated when a candle fully overlaps it or when the close lands inside it. At that moment the zone is removed from the chart and the trader receives an Alert specifying the gap type and the time of its formation — while repeated notifications for the same zone are prevented, so the log isn't cluttered with duplicates.

Configuration flexibility lets you tailor the indicator to any instrument and style of work. You can adjust the minimum gap size in points to filter out overly small zones, the depth of the historical analysis, the line width and colors, the fill and background modes, and the independent toggling of bullish and bearish gaps. The minimum-size filter is especially useful on volatile instruments, where small gaps form constantly and only add noise to the picture.

Serious attention has been paid to performance and compatibility. The historical markup is performed once at initialization, after which the indicator processes only fresh bars, so it doesn't load the terminal even on deep history. A dedicated fast path is provided for the strategy tester and optimization: the heavy multi-bar analysis and drawing are skipped in those modes, so the indicator passes validation correctly and instantly and doesn't slow down the runs.

FVG Analysis is aimed at those who build their trading around Smart Money concepts and work with zones of liquidity and inefficiency. It is useful for locating areas of probable price return, for setting targets and zones of interest, for confirming entry points in combination with other market-structure tools, and for visually studying how a given instrument mitigates its gaps. This is deliberately not a signal robot — the indicator opens no trades and draws no arrows; instead it gives the trader a clean, marked-up, and up-to-date picture of inefficiency zones, on the basis of which decisions are made independently.