Temporary Fair Value Dots for Candle Activity and Swing Levels

Summary

Temporary Fair Value (TFV) is presented as a way to locate the price area where most trading activity occurred within a candle, which ordinary candlesticks do not reveal. The indicator marks that area with a dot intended to represent a candle’s core or fair price. Its exponential parameter controls how much extra weight recent ticks receive, while a WingDing setting determines the dot symbol.

The document suggests using TFV in tick-driven trading robots to avoid reacting to isolated price spikes. It also proposes interpreting nearly straight TFV lines as potential support or resistance and using the indicator to identify swing highs and lows. These are usage claims rather than demonstrated results: no calculation details, market examples, comparative tests, or performance evidence are provided. The document does not define how the activity-based fair price is computed, so the indicator’s reliability and suitability across instruments or timeframes cannot be assessed from the description alone.

Key ideas

• TFV marks a candle’s proposed fair price with a dot based on activity during that candle.
• Its exponential setting increases the relative influence of recent ticks when set above one.
• The indicator is suggested as a filter against reacting to isolated spikes in tick-driven systems.
• Nearly straight TFV paths are presented as possible support or resistance levels.
• The document provides no formula or empirical evidence to validate these uses.

Tags

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