FVGs & CEs Detector + DYNAMIC EXTENSION Indicator

Fair Value Gaps (FVGs) are price imbalances formed when a three-candle sequence leaves a gap between the price ranges of the first and third candles. These areas show where price has moved without overlapping the surrounding candle ranges and provide a reference for observing how the market behaves if price later returns.

The FVGs & CEs Detector + DYNAMIC EXTENSION indicator, developed by Xcelerate Trade, automatically identifies bullish and bearish FVGs, displays their Consequent Encroachment (CE) levels, and monitors how price interacts with these imbalances.

The indicator combines several important features:

1. Fair Value Gap Detection - automatic identification of bullish (UP) and bearish (DOWN) FVGs.

2. Consequent Encroachment (CE) - optional visualization of the exact 50% midpoint of each FVG.

3. Dynamic Zone Extension - FVG boxes continuously extend 15 bars ahead of the current price action.

4. Configurable Mitigation - separate options for CE-based or full-gap mitigation and body- or wick-based confirmation.

5. Automatic Zone Cleanup - configurable removal of filled zones and management of older FVGs.

6. Customizable Visualization - adjustable colors, transparency, and CE line styles.

7. Alerts - notifications for FVG formation, price entering a zone, threshold crossings, and mitigation events.

What distinguishes this indicator is how these functions work together. Rather than simply drawing an FVG and leaving it on the chart, it continuously extends the zone, tracks the selected mitigation threshold, and gives you control over when the zone is removed. Combined with CE visualization and configurable alerts, this creates a more flexible way to monitor imbalances as price develops.

How the FVGs & CEs Detector Works

The indicator uses a rule-based three-candle pattern to identify Fair Value Gaps.

When the required price conditions are met, it draws a box around the imbalance and extends it forward so you can continue monitoring the zone.

Each FVG can also include a Consequent Encroachment line at its midpoint. The indicator then tracks price interactions according to the selected mitigation settings.

Bullish and Bearish Fair Value Gaps

A bullish FVG, displayed as an UP FVG, forms when the high of the first candle in a three-candle sequence is below the low of the third candle.

A bearish FVG, displayed as a DOWN FVG, forms when the low of the first candle is above the high of the third candle.

These conditions identify a price range between the first and third candles that has not been overlapped by their wicks.

The supplied indicator documentation describes the detection conditions as:

UP FVG

high[3] < low[1]

DOWN FVG

low[3] > high[1]

These expressions describe the documented three-candle relationship using historical candle references. The underlying principle is the separation between the first and third candles, rather than a particular notation.

By default, bullish FVGs are displayed in blue and bearish FVGs in orange.

The colors are customizable, and the boxes use a semi-transparent design so the underlying price action remains visible.

An FVG identifies a structural price imbalance. It does not confirm the presence of institutional orders or guarantee that price will return to the zone.

Consequent Encroachment (CE)

Consequent Encroachment represents the exact midpoint, or 50% level, of a Fair Value Gap.

For every detected FVG, the indicator calculates this midpoint and can display it as a horizontal line inside the zone.

For example, if a bullish FVG extends from 5,200 to 5,210, its CE level is 5,205.

This midpoint provides a consistent reference for observing whether price partially enters an imbalance, reacts around its center, or continues toward the opposite boundary.

You can enable or disable the CE line and customize its color and style.

Available line styles include:

• Dotted.

• Solid.

• Dashed.

The CE level is a calculated midpoint, not an automatic entry signal or a guarantee of reversal.

Dynamic FVG Extension

Each detected FVG is displayed as a box that extends forward dynamically.

The indicator maintains a projection of 15 bars ahead, updating the extension as new candles form.

This keeps existing imbalances visible as the chart develops, without requiring you to extend their boundaries manually.

The extension changes how the zone is displayed. It does not change the original price boundaries used to identify the FVG.

FVG Mitigation and Fill Detection

The indicator includes configurable conditions for determining when an FVG has been mitigated.

A gap may be partially filled when price reaches its CE level or fully filled when price reaches the opposite boundary.

The indicator provides separate settings for defining mitigation and managing when filled zones are removed from the chart.

Delete FVG at 50% Fill

When enabled, this option allows the FVG to be removed once price reaches its CE level.

When disabled, this option does not request removal at the 50% level. Whether and when the zone is removed depends on the remaining mitigation and deletion settings.

Use CE (as opposed to Full Fill)

When enabled, the indicator uses the CE level as its mitigation threshold.

When disabled, mitigation is evaluated against the full-gap boundary.

This setting defines the mitigation threshold, while the deletion settings control the removal of visual elements. The options are configurable independently.

Use candle Bodies (as opposed to wicks)

When enabled, the indicator requires the relevant candle-body closing condition to evaluate a fill.

When disabled, wick touches can satisfy the selected fill condition.

For example, a wick may briefly reach the CE level while the candle closes outside it. With wick-based detection, that interaction can count as a fill.

With body-based confirmation, the required closing condition must be satisfied.

These options make it possible to distinguish between partial and complete gap interactions and adjust how sensitively the indicator responds to price movements.

Mitigation describes price reaching the selected threshold. It does not establish that institutional orders have been filled or that the imbalance can no longer influence price.

Automatic Zone Management

The indicator includes automatic cleanup to prevent excessive accumulation of FVG boxes and lines.

The documented active FVG limit is 20, with older zones removed as the limit is exceeded.

The Delete filled boxes & lines option removes visual elements associated with filled gaps when the configured conditions are met.

This keeps the chart more readable, particularly on lower timeframes where FVGs may form frequently.

Removing a zone from the chart is a visualization decision. It does not necessarily mean the price level has lost its relevance.

Chart Appearance and Indicator Settings

The FVGs & CEs Detector provides settings for the lookback period, FVG visibility, CE lines, mitigation conditions, deletion behavior, and alerts.

FVG Settings

Number of days lookback

Controls how far back the indicator scans for Fair Value Gaps.

The documented default is 20 days.

FVGs

The main visibility control for FVG zones.

'UP' FVGs

Controls the display and color of bullish FVGs. The default color is blue.

'DOWN' FVGs

Controls the display and color of bearish FVGs. The default color is orange.

The documented default box transparency is 85%, keeping the underlying candles visible while maintaining clear imbalance zones.

CE Settings

Show CE

Enables or disables the midpoint line inside each FVG.

Color

Controls the CE line color. The documented default is black.

Style

Allows the selection of Dotted, Solid, or Dashed lines.

Deletion Options

Delete filled boxes & lines

Enables visual cleanup of filled FVG zones and their associated lines.

Delete FVG at 50% Fill

Controls whether a zone is removed when price reaches the CE level rather than waiting for the full-gap fill condition.

Mitigation Conditions

Use CE (as opposed to Full Fill)

Selects the 50% midpoint or the full-gap boundary as the mitigation threshold.

Use candle Bodies (as opposed to wicks)

Determines whether fills require candle-body closing confirmation or whether wick touches are sufficient.

The mitigation and deletion options are configurable independently, so you can adapt the indicator's behavior to your analysis.

Alerts

The indicator includes alerts for several types of FVG events:

• New bullish or bearish FVG formation.

• Price entering an existing FVG.

• Price crossing a defined FVG threshold.

• Completion of the configured mitigation condition.

The supplied documentation includes alert names such as:

FVG: Up formed

FVG: Down formed

Price entered Up FVG

Price entered Down FVG

FVG: IOFED into Up/Down FVG

FVG: ABOVE/BELOW threshold

These labels come from different documented releases. Exact alert availability and wording may depend on the published script version.

TradingView alerts can also be configured to trigger on bar close, depending on the desired confirmation behavior.

These notifications make it easier to monitor FVG interactions without constantly watching the chart. They are not confirmed trading signals.

How to Use the FVGs & CEs Detector

The indicator is designed to complement market structure and liquidity analysis rather than replace a trading strategy.

Start by identifying the broader market structure, relevant liquidity, and the direction of price movement.

Then observe newly formed bullish or bearish FVGs, evaluate their location, and monitor whether price returns to the imbalance.

The CE line provides an additional reference for assessing partial mitigation, while the selected fill conditions determine how the indicator records subsequent interactions.

A useful analysis sequence is:

Market Structure → Liquidity → FVG Identification → CE / Mitigation → Strategy Confirmation → Execution

For example, after a relevant liquidity event and a confirmed structural shift, you may identify an FVG created during Displacement.

If price later retraces into that FVG, evaluate whether the interaction satisfies the confirmation and execution conditions of your strategy.

The presence of an FVG alone is not sufficient to establish a valid setup.

A Practical Example

Consider a hypothetical bullish FVG identified on an intraday chart between 5,200 and 5,210.

The indicator displays the imbalance as an UP FVG and calculates its CE level at 5,205.

Price initially moves away from the zone before returning to it later in the session.

If price reaches 5,205, it has reached the 50% midpoint of the FVG.

With Use CE (as opposed to Full Fill) enabled, this interaction can satisfy the selected mitigation condition, depending on whether body-based or wick-based confirmation is configured.

If Delete FVG at 50% Fill is enabled, the zone can be removed when the corresponding deletion condition is met.

If you instead use full-gap mitigation, the indicator evaluates whether price reaches the opposite boundary at 5,200.

You can then observe whether price reacts within the imbalance, continues through the zone, or develops additional structural confirmation.

For example, your trading strategy may require a valid bullish CHoCH, Displacement, or a specific liquidity condition before considering a Long entry.

In each scenario, the indicator identifies the FVG and monitors its interaction with price. Your strategy determines whether the conditions support a valid trade.

Adding Market Context

Fair Value Gaps become more useful when evaluated alongside other elements of market analysis.

Relevant context may include:

• Market Structure.

• Liquidity.

• Support and Resistance.

• Order Blocks.

• CHoCH, MSS, and BOS.

• Displacement.

• Higher-timeframe direction.

• Trading sessions.

• Scheduled economic events.

For example, a bullish FVG formed after a relevant liquidity sweep and a valid bullish structural shift may provide a different context from a bullish FVG appearing directly below significant higher-timeframe resistance.

Similarly, a bearish FVG formed during a strong downward move does not automatically justify a Short position if the broader market structure or liquidity conditions do not support the setup.

Higher-timeframe FVGs can provide additional context for lower-timeframe analysis, but their importance must be evaluated rather than assumed.

The indicator identifies imbalances using price-based conditions. Market structure, liquidity, and confirmation requirements must be assessed separately.

These elements should be combined according to your trading strategy rather than treated as independent reasons to enter a trade.

Choosing the Timeframe

The indicator supports TradingView timeframes ranging from short-term intraday charts to higher-timeframe analysis.

The most suitable settings depend on the instrument, timeframe, and trading approach.

Scalping (1m-5m)

You may use CE-based mitigation and body-based confirmation to monitor FVG interactions while keeping the chart less cluttered.

Enabling Delete FVG at 50% Fill can remove zones after the selected midpoint interaction.

Intraday (5m-1H)

You can choose between CE-based and full-gap mitigation depending on whether you want to monitor partial retracements or complete fills.

The dynamic extension and alerts provide a practical way to track FVGs during active trading sessions.

Swing Trading (1H+)

Full-gap mitigation may be useful when you want to observe an imbalance until price reaches its opposite boundary.

Keeping CE lines visible provides an additional reference for partial interactions.

These are configuration suggestions, not universal rules. The appropriate settings depend on your strategy and the behavior of the instrument being traded.

What the Indicator Does Not Tell Us

The FVGs & CEs Detector identifies Fair Value Gaps based on a defined three-candle price pattern, calculates their CE levels, and monitors mitigation according to the selected conditions.

However, it does not directly measure institutional order flow, determine whether unfilled orders remain inside an FVG, or guarantee that price will react when returning to the zone.

Not every FVG will be revisited, and reaching the CE level does not guarantee a reversal or continuation.

A fully mitigated FVG may remain relevant to broader price analysis, while an unmitigated FVG does not automatically represent a trading opportunity.

The indicator also does not determine Stop Loss placement, Position Size, or the appropriate risk for a trade.

These decisions remain part of your execution and risk management process.

The FVGs & CEs Detector and Trading Strategy

The FVGs & CEs Detector + DYNAMIC EXTENSION combines automatic bullish and bearish Fair Value Gap detection, Consequent Encroachment levels, dynamic 15-bar extension, configurable mitigation, automatic zone cleanup, and alerts.

Together, these features provide a structured view of price imbalances and how the market interacts with them over time.

The indicator identifies FVG formation and mitigation, while a complete trading strategy determines how that information should be interpreted alongside market structure, liquidity, confirmations, execution, and risk management.

At Xcelerate Trade, we develop indicators that support clearer and more consistent market analysis. The FVGs & CEs Detector provides a practical way to identify and monitor potential areas of interest, but a valid trading setup must still satisfy the conditions defined by your strategy.

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The FVGs & CEs Detector + DYNAMIC EXTENSION indicator is published on TradingView as an Invite-Only script. Access requests are reviewed manually.

View FVGs & CEs Detector + DYNAMIC EXTENSION on TradingView.