Fair Value Gap or FVG indicator MT4
- Indikatoren
- Eda Kaya
- Version: 1.11
Fair Value Gap or FVG indicator MT4
Traders utilize a variety of tools and methodologies to uncover profitable market opportunities. One such efficient and valuable tool is the Fair Value Gap (FVG) indicator in MetaTrader 4. A Fair Value Gap (FVG) represents a pricing discrepancy where the market has not yet reached an equilibrium between supply and demand. These gaps materialize during significant price swings. In simpler terms, when three consecutive candlesticks form, the space between the first and third candlestick is identified as the "FVG."
«Indicator Installation & User Guide»
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Indicator Specifications Table
Category | ICT - Liquidity - Smart Money |
Platform | MetaTrader 4 |
Skill Level | Intermediate |
Indicator Type | Reversal - Continuation |
Time Frame | Multi-time frame |
Trading Style | Intraday Trading |
Market | All Markets |
Indicator Overview
The Fair Value Gap indicator autonomously detects and highlights "FVGs" on the price chart using visual markers. These imbalances, driven by demand and supply shifts, serve as key points for potential trend reversals. By pinpointing these areas, traders can better define Support and Resistance levels, making the FVG a strategic point for entering or exiting trades.
Uptrend Conditions
Examining the Binance Coin (BNB) chart on a 1-hour timeframe, we see that during an upward trend, price action consistently revisits Fair Value Gap (FVG) zones before continuing its ascent. These moments provide ideal entry points for long positions each time the price retraces to these identified areas.
Downtrend Conditions
A 30-minute price chart of the USD/CAD currency pair demonstrates how this indicator functions in bearish conditions. Following a pullback, the price reverts to the Fair Value Gap detected by the indicator and then continues its downward trend. The interaction points between the candlesticks and these zones serve as effective opportunities for short positions.
Settings
- Theme Customization: Users can switch between Dark and Light backgrounds.
- Candles Count: The indicator processes 1000 candlesticks for FVG calculations.
- Object Labels: A custom suffix can be added to differentiate boxes.
- Gap Calculation Mode: This setting determines the method for identifying and computing FVGs.
- Display Options: The indicator allows toggling the visibility of all FVGs.
- Recent FVG Display: If enabled, only the most recent Fair Value Gaps appear on the chart.
Conclusion
The Fair Value Gap (FVG) indicator is an indispensable tool for traders looking to refine their entry and exit strategies while identifying significant support and resistance levels. Designed for those with a solid grasp of liquidity concepts, this indicator provides precise market imbalance detection, enabling more informed trading decisions.
One of the simplest and cleanest Fair Value Gap (FVG) indicators in the market. Options like 'FVG Types' allow you to adjust the amount, and 'Show Last FVG' only displays the latest FVG. These options allow you to keep the chart clean. If it had an option to choose mitigation methods like close, wick, or average, and a color option to differentiate between fresh FVG and touched FVG, it would be perfect.