1. Flux Charts
  2. Price Action Toolkit

Price Action Toolkit: Fair Value Gaps

Fair Value Gaps in the Price Action Toolkit

A Fair Value Gap (FVG) is an imbalance between buyers and sellers in the market, leaving a ‘gap’ where price will fill or return to rebalance unfilled orders. The Price Action Toolkit automatically identifies and plots FVGs on your chart. Below, we’ve outlined how each setting and feature works.

Settings

Detection Method

There are three methods to choose from for Fair Value Gap detections: Same, Mixed, and All.

  • Same: All three candles forming the FVG must be bullish or bearish.

Price Action Toolkit FVG Detection set to Same Type

  • All: The three candles forming an FVG don’t have to all be bullish or bearish.

    Price Action Toolkit FVG Detection set to All

  • Mixed: Both types of FVGs, Same and All, will be displayed. This method is selected by default.

Invalidation Method

The Invalidation Method setting allows traders to choose how an FVG is invalidated. You can choose between Close and Wick.

Close: A candle must close below a bullish FVG or above a bearish FVG to invalidate it.

Wick: A candle’s wick must go below a bullish FVG or above a bearish FVG to invalidate it.

Sensitivity

The sensitivity setting determines the minimum gap size required for an FVG detection. A higher sensitivity will filter out smaller gaps, while a lower sensitivity will detect more frequent, smaller gaps. Setting the sensitivity to 0 will display all gaps, regardless of their size.

Volumetric Info

Enabling volumetric information adds a layer of analysis by associating volume data with FVGs. This helps traders assess the strength and reliability of the gaps. Volume profiles for each FVG display total volume, high/low volume ratios, and visual representations of volume activity within the gap.

Total Volume: Displays the combined volume for the bars that form the FVG, providing a clear indication of market participation in the gap

Percentage Ratio: Shows the proportion of high vs. low volume within the FVG:

  • Low Percentage: Indicates dominance of buyers or sellers, depending on the FVG direction.

  • High Percentage: Indicates reduced volume support for the FVG's direction, suggesting the gap may be less reliable.

Volume Bars Visualization: Displays the buying versus selling volume in the FVG.

Price Action Toolkit Fair Value Gap volumetric information

Combine Zones

Enabling the 'Combine Zones' setting merges overlapping FVGs of the same type into a single larger zone, reducing chart clutter.

Midline

When enabled, a dashed line is drawn at the center of the FVG.

Label

When enabled, a text label will be plotted with the gap, clearly identifying the zone as an FVG.