FVG Levels

FVG Levels Indicator Description

The FVG Levels indicator dynamically identifies and displays key price zones that may represent fair value gaps and order block areas, helping traders to visually pinpoint potential support and resistance levels directly on the chart.

Key Features
Order Block Identification:
The indicator detects bullish and bearish order blocks by analyzing specific candle patterns. For bullish zones, it checks if a candle two bars ago was bullish (close greater than open) coupled with a subsequent gap condition. Similarly, bearish zones are identified when bearish candle conditions are met with an appropriate gap.

Dynamic Zone Calculation:
It computes critical levels such as the highest highs, lowest lows, highest lows, and lowest highs over a series of recent bars. These levels define the boundaries of potential buy and sell zones and adjust dynamically as new price data comes in.

Visual Representation:
Buy zones are plotted in lime and sell zones in yellow, with the indicator filling the areas between the high and low lines to create clear, shaded bands. This visual aid helps in quickly recognizing zones of potential price reaction.

Chart Overlay:
Designed to work as an overlay, the indicator integrates directly onto your price chart, allowing for seamless correlation between price action and identified zones.

How It Works
Bullish Zones:
When a bullish candle (with the candle's close above its open) is detected along with a significant gap, the indicator marks the upper and lower boundaries of the bullish order block. It further refines these levels by tracking the lowest low and highest high over recent bars to enhance the zone's definition.

Bearish Zones:
In a similar manner, the indicator calculates bearish order blocks by confirming bearish candle conditions and corresponding gap criteria. It then updates the bearish zone levels and computes the highest high and lowest low to establish clear sell zone boundaries.

Usage
Traders can use the FVG Levels indicator to:

Identify potential entry and exit points by observing where price may reverse or consolidate.
Recognize fair value gaps or imbalances that often act as magnet points for price action.
Enhance risk management by using the dynamically calculated zones to set stop-losses or take-profits.