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Fair Value Gap (FVG) detects areas where price moved so quickly that a gap was left between the wicks of surrounding candles. In Smart Money Concepts theory, these gaps act as magnets — institutional participants expect price to return and fill them before continuing. Cluster Terminal displays FVGs on the current timeframe and optionally on higher timeframes (15M, 1H, 4H, Daily, Weekly), giving you a multi-layered view of unfilled inefficiencies.

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How FVGs Form

A Fair Value Gap is created by a three-candle pattern:
  1. Candle 1 establishes a reference high or low.
  2. Candle 2 is a large-bodied impulse candle that creates the gap.
  3. Candle 3 opens and trades in a way that leaves a gap between Candle 1’s wick and Candle 3’s wick.
The gap represents a price range where only one side of the market participated. The expectation is that price will revisit this zone to establish “fair value” — allowing the other side to trade.
  • Bullish FVG: Forms when price drops sharply. The gap is between Candle 1’s low and Candle 3’s high. Price is expected to retrace upward into the gap.
  • Bearish FVG: Forms when price rallies sharply. The gap is between Candle 1’s high and Candle 3’s low. Price is expected to retrace downward into the gap.
Higher timeframe FVGs (4H, Daily, Weekly) carry significantly more weight than lower timeframe ones. An unfilled Daily FVG near a key support or resistance level provides a high-probability entry zone.

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Detection Settings

These parameters control how FVGs are identified.

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Higher Timeframe Settings

FVGs from higher timeframes are projected onto your current chart, providing context from larger market participants.
Higher timeframe FVGs are calculated by the indicator internally — you do not need to switch chart timeframes. The indicator aggregates candle data to construct HTF candles and detect their gaps.

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Visual Settings

Control the appearance of FVG zones on the chart.

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Per-Timeframe Colors

When unifiedStyle is disabled, each higher timeframe can have its own color scheme. This makes it easy to visually distinguish which timeframe an FVG belongs to.

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Alert Settings

FVG alerts fire when price approaches an unfilled gap, giving you advance notice before a potential reaction.

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Alert Events

Configure alert sounds and notifications in the global Alerts settings panel.

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Practical Usage

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FVG Quality Hierarchy

Not all FVGs are equal. Quality depends on several factors:

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Confluence Setups

FVGs are most effective when combined with other tools:
  • Order Blocks + FVG: An FVG that overlaps with an order block creates a high-confluence zone where both price inefficiency and institutional positioning align.
  • Volume Profile POC: An FVG near a Volume Profile POC suggests the market considers this level important from both time and structural perspectives.
  • Market Structure (BOS/CHoCH): FVGs formed during a structural break tend to be more significant as they represent the inefficiency created by the break itself.

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Common Pitfalls

  • Trading every FVG: Lower timeframe FVGs fill constantly. Focus on HTF gaps or those near structural levels.
  • Expecting exact fills: Price does not always fill an FVG completely. The midline (50%) is often enough to satisfy the inefficiency.
  • Ignoring trend context: FVGs in the direction of the trend are more likely to hold. Counter-trend FVGs fill more easily.
FVGs are structural zones, not trade signals by themselves. Always confirm with order flow data (delta, absorption, imbalance) before entering a position at an FVG level.