Fair Value Gap Indicator - free 7-day trial

Fair Value Gap Indicator

The Fair Value Gap Indicator is a professional market-structure tool for NinjaTrader 8 focused on identifying and managing Fair Value Gaps (FVG) with precision and clarity. It automatically detects bullish and bearish FVGs and tracks how price interacts with them in real time.

Unlike static gap drawings, each FVG dynamically extends forward until true mitigation occurs. A gap is only considered mitigated when price penetrates at least one full tick inside the zone, helping traders avoid false touches and premature conclusions.

When an FVG is mitigated, the indicator evaluates price behavior and classifies the reaction as Respect (-R) or Disrespect (-D). If a respected gap is later broken, the label automatically updates to reflect the new market behavior.

To provide additional context without clutter, the indicator can also display Order Blocks (OB) and optional Intermediate Term High / Low (ITH / ITL) swing markers, giving traders a broader structural view while keeping Fair Value Gaps as the main focus.

With full control over colors, opacity, lookback, and maximum active zones, the Fair Value Gap Indicator adapts easily to any instrument or timeframe—whether used as a discretionary visual tool or as a structural filter inside automated strategies.

Highlights

• Fair Value Gap (FVG) auto-detection
• Zones extend until true mitigation
• Reaction labeling: Respect (-R) / Disrespect (-D)
• Optional Order Blocks and Intermediate TH/L context
• Clean charts with stable NinjaTrader 8 performance

Key Features

• Automatic detection of bullish and bearish Fair Value Gaps
• Dynamic extension of FVGs until meaningful mitigation
• Mitigation requires minimum 1-tick penetration
• Clear lifecycle tracking: active → respected / disrespected
• Centered labels with optional mitigated styling
• Optional Order Blocks (OB) for added structure
• Optional Intermediate Term High / Low (ITH / ITL) swing markers
• Lookback and max-zone limits for optimal performance
• Usable standalone or as a strategy filter (NinjaTrader 8)

Who is this indicator for?

• Traders who base decisions on Fair Value Gaps
• ICT-style traders seeking objective FVG behavior
• Discretionary traders who want clean, readable charts
• Systematic traders needing reliable structural context

FAQ

Does it repaint?

Fair Value Gaps are created from completed bar conditions and then managed forward in time. Optional swing markers (ITH / ITL) are based on confirmed swing sequences.

How does mitigation work?

A zone is only considered mitigated when price penetrates at least one full tick into the zone, avoiding false “touches.”

Why might my zones look different from NinjaTrader’s native FVG?

While both tools are based on the same Fair Value Gap concept, they serve different purposes within the NinjaTrader ecosystem. The native NinjaTrader FVG tracks gap filling at a tick-by-tick level, whereas this indicator treats the FVG as a structural zone that remains valid until meaningful mitigation occurs. This mitigation logic prioritizes price reaction over partial fills and is inspired by educational concepts commonly discussed by traders such as Arjo, focusing on whether price respects or invalidates the imbalance. As a result, the two tools are not expected to match visually, even when identifying the same underlying gap.

What do -R and -D mean?

Respect (-R) indicates that price reacted in line with the original imbalance after mitigation, while Disrespect (-D) indicates that price broke through the zone, invalidating its directional implication.

Can I control how many zones appear?

Yes. Lookback and max-zone limits allow you to control how many Fair Value Gaps remain active, keeping charts fast and readable.

Can I customize colors and opacity?

Yes. You can configure colors and opacity for bullish and bearish zones, as well as visual styling for mitigated gaps.

Can it be used with strategies?

Yes. The indicator can be used as a standalone visual tool or integrated as a structural filter within NinjaTrader strategies.