Fair Value Gap Midpoint Entries with Filters and Risk-Based Sizing
Summary
This script outlines a strategy built around bullish and bearish fair value gaps. It detects a gap when the current candle’s low is above the high from two candles earlier, or when its high is below the low from two candles earlier. A same-direction candle and a minimum candle-range threshold based on ATR can further qualify the signal.
The visible rules add optional EMA trend, RSI, and trading-session filters, with configurable position sizing and take-profit modes. Inputs also suggest swing-based setup tracking and expiring setups, but the supplied excerpt ends before those rules are shown. It provides no performance results or complete entry, stop-loss, and exit logic, so the strategy’s execution details and effectiveness cannot be assessed from this excerpt alone.
Key ideas
- Bullish and bearish fair value gaps are identified by comparing the current candle with the candle two bars earlier.
- An optional ATR-based range threshold filters out smaller displacement candles.
- EMA, RSI, and session conditions can restrict which gap signals qualify.
- Position sizing and take-profit approaches are configurable, but the excerpt omits their implementation.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.