fair-value-gaps

Name: fair-value-gaps
Author: SKE-Labs

15stars2forks

How to install fair-value-gaps?

ske-labs/agent-trading-skills/fair-value-gaps

$npx -y skills add SKE-Labs/agent-trading-skills --skill fair-value-gaps

Installs into the current project.

Summary

Detect and test three-candle fair-value-gap zones. Use when the user wants an objective wick-gap definition, retracement statistics, entry, invalidation, and cost-aware validation.

Files · 1

View on GitHub

SKILL.md

1	# Fair Value Gaps (FVG) Trading
2
3	A three-candle wick-gap convention. The pattern is observable in OHLC data; calling it inefficiency or institutional imbalance requires separate order-book/trade evidence.
4
5	## Identification
6
7	### Bullish FVG
8
9	1. Strong bullish middle candle
10	2. Gap between Candle 1 high and Candle 3 low
11	3. Zone = the unfilled gap area
12
13	### Bearish FVG
14
15	1. Strong bearish middle candle
16	2. Gap between Candle 1 low and Candle 3 high
17	3. Zone = the unfilled gap area
18
19	### Quality Factors
20
21	- Normalize gap size by ATR, spread, and middle-candle range.
22	- Record preceding swing/sweep, time-of-day relative volume, and higher-timeframe state as features.
23	- Calibrate thresholds and interactions; do not convert them into untested quality labels.
24
25	## Workflow
26
27	1. Identify FVG after impulsive move using candle data:
28	```
29	get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<date>)
30	```
31	2. Mark the zone using `draw_chart_analysis` with type `demand` (bullish) or `supply` (bearish)
32	3. Wait for retracement into the gap
33	4. Choose an entry rule — near boundary, midpoint, full traversal, or price confirmation; select in training data only
34	5. Stop loss beyond the full FVG boundary
35	6. Target the high/low of the impulse move
36
37	### FVG + Order Block Confluence
38
39	Record overlap with a separately defined order-block zone and test whether it adds value over FVG alone; the labels are correlated price-derived features.
40
41	## Evidence and Validation
42
43	- Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes.
44	- Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried.
45	- Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter.
46	- Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status.
47	- Research basis: The three-candle definition follows the [ICT convention](https://www.theinnercircletraders.com/fair-value-gaps-vs-order-blocks/), but independent market-microstructure research links price changes to observable order-flow imbalance and depth—not to guaranteed gap fills.
48
49	## Key Rules
50
51	- Estimate touch and fill rates with a fixed horizon and competing-risk rule; do not call gaps magnets.
52	- Expire zones after a predeclared time and retain unfilled zones in the denominator.
53	- Test stacked gaps and higher-timeframe alignment rather than assuming directional strength.
54	- The midpoint is a coordinate, not an empirically privileged entry.
55
56	## Related Skills
57
58	- order-blocks — test overlap between two explicitly defined candle-zone conventions
59	- premium-discount — Enter FVGs in discount for longs, premium for shorts

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fair-value-gaps

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View on GitHub

How to install fair-value-gaps?

ske-labs/agent-trading-skills/fair-value-gaps

$npx -y skills add SKE-Labs/agent-trading-skills --skill fair-value-gaps

Installs into the current project.

Summary

Detect and test three-candle fair-value-gap zones. Use when the user wants an objective wick-gap definition, retracement statistics, entry, invalidation, and cost-aware validation.

Files · 1

View on GitHub

SKILL.md

1	# Fair Value Gaps (FVG) Trading
2
3	A three-candle wick-gap convention. The pattern is observable in OHLC data; calling it inefficiency or institutional imbalance requires separate order-book/trade evidence.
4
5	## Identification
6
7	### Bullish FVG
8
9	1. Strong bullish middle candle
10	2. Gap between Candle 1 high and Candle 3 low
11	3. Zone = the unfilled gap area
12
13	### Bearish FVG
14
15	1. Strong bearish middle candle
16	2. Gap between Candle 1 low and Candle 3 high
17	3. Zone = the unfilled gap area
18
19	### Quality Factors
20
21	- Normalize gap size by ATR, spread, and middle-candle range.
22	- Record preceding swing/sweep, time-of-day relative volume, and higher-timeframe state as features.
23	- Calibrate thresholds and interactions; do not convert them into untested quality labels.
24
25	## Workflow
26
27	1. Identify FVG after impulsive move using candle data:
28	```
29	get_candles_around_date(symbol=<symbol>, exchange=<exchange>, interval=<interval>, date=<date>)
30	```
31	2. Mark the zone using `draw_chart_analysis` with type `demand` (bullish) or `supply` (bearish)
32	3. Wait for retracement into the gap
33	4. Choose an entry rule — near boundary, midpoint, full traversal, or price confirmation; select in training data only
34	5. Stop loss beyond the full FVG boundary
35	6. Target the high/low of the impulse move
36
37	### FVG + Order Block Confluence
38
39	Record overlap with a separately defined order-block zone and test whether it adds value over FVG alone; the labels are correlated price-derived features.
40
41	## Evidence and Validation
42
43	- Treat the setup as a testable hypothesis, not a prediction. Define thresholds, entry, invalidation, and exit before evaluating outcomes.
44	- Calibrate on the same instrument, venue, session, and timeframe. Use closed candles and a held-out or walk-forward sample; record every variant tried.
45	- Include spread, fees, slippage, borrow or funding, partial fills, and latency. Reject the setup when net expectancy is not positive or depends on one narrow parameter.
46	- Return observed inputs, missing data, cost assumptions, entry, invalidation, exit, and a valid, watch, or no-trade status.
47	- Research basis: The three-candle definition follows the [ICT convention](https://www.theinnercircletraders.com/fair-value-gaps-vs-order-blocks/), but independent market-microstructure research links price changes to observable order-flow imbalance and depth—not to guaranteed gap fills.
48
49	## Key Rules
50
51	- Estimate touch and fill rates with a fixed horizon and competing-risk rule; do not call gaps magnets.
52	- Expire zones after a predeclared time and retain unfilled zones in the denominator.
53	- Test stacked gaps and higher-timeframe alignment rather than assuming directional strength.
54	- The midpoint is a coordinate, not an empirically privileged entry.
55
56	## Related Skills
57
58	- order-blocks — test overlap between two explicitly defined candle-zone conventions
59	- premium-discount — Enter FVGs in discount for longs, premium for shorts

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