Optimized for multi-timeframe analysis, this indicator runs seamlessly on the TradingView platform. It is particularly suited for advanced traders who specialize in intraday trading, liquidity-based setups, and reversal strategies.
You can access the Indicator from this link:
https://tradingfinder.com/products/i...gaps-setup-01/
You can access the Indicator on the TradingView website:
https://www.tradingview.com/script/X...orption-CHoCH/
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Key Features & Use Cases
- Detects Fair Value Gaps (FVGs) in real-time
- Marks CHOCH (Change of Character) to signal market trend shifts
- Highlights key support and resistance zones
- Supports price action and reversal setups using FVGs
Trading Scenarios
Uptrend Scenario
In bullish conditions, the indicator detects gaps created by strong upward moves.
Example:
- On the daily USD/JPY chart, a sharp bullish impulse forms a gap between candles.
- This gap acts as a support zone, prompting a potential retracement.
- A Buy setup is validated when:
- Price revisits the FVG zone
- A previous high is broken
- Trading volume increases
- This reflects a bullish CHOCH, confirming upward momentum.
Downtrend Scenario
In bearish conditions, the indicator highlights gaps that turn into resistance zones.
Example:
- On the 15-minute XAU/USD (Gold) chart, the market breaks a previous low during a bearish impulse.
- An FVG forms as price declines rapidly.
- Price re-entry into the FVG zone followed by continued downside confirms seller dominance.
- This represents a bearish CHOCH, signaling sustained downward pressure.
Trading Insight:
These visual cues help traders validate Sell entries during bearish market phases.
Adjustable Settings
Market Structure Configuration
- Pivot Period – Defines periods for structural pivot detection
- Show Major Bullish CHOCH Lines – Highlights significant bullish shifts
- Show Major Bearish CHOCH Lines – Displays key bearish reversals
Fair Value Gap Detection
- FVG Detector Multiplier Factor – Adjusts FVG sensitivity
- FVG Validity Period (Bars) – Controls how long a gap remains valid
- Mitigation Level FVG – Defines levels at which FVGs are considered mitigated
- Show Demand FVG – Visualizes demand-driven gaps
- Show Supply FVG – Highlights supply-side gaps
- FVG in Low-Risk Zone – Marks imbalances within safer trading zones
Alerts & Notifications
- Alert Activation – Enables real-time alerts
- Custom Alert Name – Personalize alert labels
- Message Frequency – Manage how often alerts trigger
- Show Alert Time by Time Zone – Aligns alerts with local time
- Long/Short Position Messages – Provides specific Buy/Sell notifications
Conclusion
The Fair Value Gaps Setup 01 Indicator is both a visual and analytical trading tool for identifying CHOCH events and FVG zones within the framework of ICT and Smart Money principles.
- CHOCH lines reveal critical breaks in structure and trend reversals.
- FVG detection exposes price inefficiencies that often serve as entry or exit points.
By combining market structure analysis, liquidity zones, and gap detection, this indicator gives traders a strategic edge in spotting high-probability trade setups. It is especially effective for those trading in volatile conditions on the TradingView platform.