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When the market moves violently in one direction, it often leaves behind “holes” in the price action where liquidity was thin. These are known as Fair Value Gaps (FVG) or Imbalances. The Mkt-Viper FVG Engine automatically highlights these inefficiencies. In institutional trading theory, price views these gaps as “unfinished business.” The market has a natural tendency to treat these gaps as magnets, returning to them to “rebalance” the price before continuing the trend. Image

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Visuals

  • Bullish FVG (Green Box): An area where aggressive buying occurred, leaving no overlapping sell orders. Price often dips back into this zone to find support.
  • Bearish FVG (Red Box): An area where aggressive selling occurred. Price often rallies back into this zone to find resistance.
  • The Midline (Consequent Encroachment): Every FVG box features a dotted line running through the exact center (50% mark).
    • Significance: In Smart Money trading, the 50% level of a gap is the strongest reaction point. It is often the “sweet spot” for setting a Limit Order.
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The Smart Noise Filter

A common issue with standard FVG indicators is that they spam the chart with tiny, irrelevant gaps from every 1-minute candle. Mkt-Viper Edge solves this with a built-in ATR Noise Filter.
  • How it works: The engine measures the size of the gap relative to the average volatility (ATR) of the asset.
  • The Result: It automatically hides “Micro-Gaps” that are likely just random market noise. It only displays Significant Imbalances that are large enough to act as genuine magnets for price.

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Mitigation (Rebalancing)

FVGs are temporary reference points. Once the market returns to the gap and trades through it, the inefficiency is considered “Rebalanced” or “Filled.”
  • Active State: The box remains on your chart extending to the right.
  • Filled State: As soon as price action fully closes the gap or trades through the other side, the Mkt-Viper engine automatically deletes the box from your chart. This ensures you are never distracted by “dead” levels.
Strategy: The “Fill & Bounce”FVGs are excellent targets for entries, especially when combined with Order Blocks.
  1. The Setup: Price rallies aggressively, leaving a large Bullish FVG.
  2. The Retrace: Wait for price to drift back down towards the gap.
  3. The Entry:
    • Aggressive: Enter at the Top Edge of the FVG.
    • Precision: Set your Limit Order at the Midline (50%) of the FVG.
  4. The Confirmation: Watch for a lower timeframe rejection (Internal CHoCH) inside the gap to confirm the bounce.