Fair Value Gap Retracements After Break of Structure

Summary

This strategy identifies market-structure breaks using confirmed swing highs and lows, then looks for a fair value gap (FVG) in the same direction. A candidate gap must meet minimum size and displacement-body thresholds relative to ATR. The script stores the latest qualifying bullish and bearish zones and calculates 50% and 62% retracement levels within them as potential entry triggers. It also offers configurable swing length, entry level, and whether a structure break is judged by candle close or wick.

The available document ends partway through the source, before the entry and exit logic is complete, so the exact order triggers, stop placement, and profit-taking rules cannot be confirmed. The visible settings include a 14-period ATR, a 0.8 ATR displacement threshold, a 0.15 ATR minimum gap, a two-tick stop buffer, and a 2:1 risk-reward target, but these alone do not show how trades are executed. No market, backtest period, or performance evidence is provided.

Key ideas

• The method looks for a confirmed swing break followed by a directionally aligned fair value gap.
• Gap size and the middle candle’s body are filtered using ATR-based thresholds.
• The latest qualifying gap is retained, with 50% and 62% retracement levels calculated as entry candidates.
• The visible parameters specify a 2:1 risk-reward target and a two-tick stop buffer, but the excerpt omits the associated trade logic.
• The source is truncated, so actual execution rules and strategy performance cannot be assessed.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.