Imbalances

Fair Value Gaps are price imbalances created when the market moves so aggressively in one direction that a gap forms between two non-overlapping candles. These gaps represent areas where price effectively skipped over, and the market has a natural tendency to return and fill them — either partially or completely — before continuing.

What it shows:

• Bullish FVGs — gaps created during strong upward moves, which price often returns to from above as a support zone

• Bearish FVGs — gaps created during strong downward moves, which price often returns to from below as a resistance zone

• A midline through each FVG showing the exact 50% fill level, which is commonly the most reactive price point within the gap

• Progressive shading inside the gap that updates as price enters and partially fills it, giving you a real-time view of how much remains unfilled

How to use it:

• The FVG Timeframe setting allows you to pull gaps from a higher timeframe and display them on your current chart — a 4H FVG visible on a 15-minute chart carries significantly more weight than a 15-minute FVG alone

• Max FVG Width filters out overly large gaps that may be less reliable — typically you want gaps that are meaningful but not so large that they represent disorderly markets

• FVG Filtering automatically removes tiny, insignificant gaps that fall below a dynamic threshold based on the current price range, keeping your chart focused on actionable levels only

• The Mitigation Method controls when a gap is considered filled and removed — the Average method (which removes the gap when price reaches the midpoint) is popular among SMC traders because the 50% level is frequently the actual reaction point

• Mark FVG Fill visually tracks how much of each gap has been penetrated, making it easy to see partially filled gaps at a glance

• The Mid Line is particularly important within FVGs — many traders use the midpoint exclusively as their entry target rather than waiting for price to reach either edge of the gap

• Extend FVG Zones keeps unfilled gaps projected forward even as bars accumulate to the right

Pro tip: The most powerful FVGs are those that were created by a displacement candle — a large, abnormally strong candle that also caused a market structure break. These displacement-created FVGs are much more likely to hold as support or resistance than ordinary gaps.