What is FVG?
The product models an FVG with upper, middle, and lower levels plus a required bullish or bearish direction. It is a market-structure reference rather than a prediction.
Market structure & levels
Fair Value Gap explained
A Fair Value Gap, or FVG, describes a three-candle price imbalance zone. AlertoWatch resolves the latest qualifying unmitigated bullish or bearish zone within the configured lookback.
How it works
A deterministic three-candle relationship identifies a gap, applies a minimum-size filter, and tracks whether its far boundary has been mitigated. If no qualifying active zone exists, the value is unavailable and does not trigger.
How traders often interpret it
Some traders monitor an FVG as an imbalance area that price may later revisit. That interpretation depends heavily on methodology and broader market structure.
What it can be useful for
- monitoring price interaction with imbalance levels
- adding market-structure context
- defining level-cross alert ideas
- combining structure with momentum
Indicators it pairs well with
RSI adds momentum context around an imbalance level.
EMA compares local structure with broader trend context.
The daily open adds a fixed session reference near the zone.
Using FVG in AlertoWatch
Turn the indicator relationship into a precise monitored condition. These are plain-English rule ideas, not recommendations or promises about market outcomes.
- Alert me when price crosses a bullish FVG upper level.
- Alert me when price crosses a bearish FVG lower level.
- Alert me when price crosses an FVG midpoint while RSI improves.
Limitations
FVG interpretation is methodology-dependent, not every detected zone will react meaningfully, and the feature is subject to plan entitlement.
FAQ
Is every visible gap a Fair Value Gap?
No. AlertoWatch uses a documented three-candle relationship and quality filter.
Does price always return to an FVG?
No. A revisit is never guaranteed.
Why must direction be selected?
The runtime descriptor requires either bullish or bearish direction; a combined direction is not supported.
Is FVG available on every plan?
No. FVG conditions are governed by the current plan entitlement.