Imbalance Detection Indicator ICT MT4
- Indicators
- Eda Kaya
- Version: 1.11
Imbalance Detection Indicator ICT MT4
The Imbalance Detection Indicator ICT MT4 for MetaTrader 4 is designed to identify key market inefficiencies, including Volume Imbalances (VI), Opening Gaps (OG), and Fair Value Gaps (FVG). This tool visually represents bullish imbalances in green and bearish imbalances in red. Market imbalances occur when supply and demand levels are out of sync, often signaling potential price targets.
«Indicator Installation & User Guide»
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Indicator Specifications Table
Category | ICT - Liquidity - Supply and Demand |
Platform | MetaTrader 4 |
Skill Level | Advanced |
Indicator Type | Continuation - Reversal |
Timeframe | Multi-timeframe |
Trading Style | Scalping - Day Trading |
Market | Forex - Stocks - Commodities |
Indicator Overview
This indicator allows traders to track the frequency and percentage fill of imbalances, helping them determine strong support and resistance levels (Supply & Demand zones). Since price often retraces to fill these imbalances, these areas can act as high-probability price targets. One of the key features of this tool is its ability to highlight opening gaps, providing valuable insights for price movement analysis.
Detecting Imbalances in an Uptrend
On a 1-hour Gold (XAU/USD) chart, the indicator marks a Fair Value Gap (FVG) using a green box. The centerline of this box highlights the 50% level of the FVG area. When the price revisits this midpoint, it often presents an ideal opportunity for entering long (buy) positions.
Detecting Imbalances in a Downtrend
Similarly, on a 5-minute EUR/USD chart, the indicator identifies gaps between two non-adjacent candles, outlining them in a red box. As illustrated in the chart, once the price returns to the 50% level of the bearish FVG, it resumes its downward movement, reinforcing the significance of these imbalance zones.
Indicator Settings
- Color Theme: Defines the background theme.
- Show FVG: Enables the display of Fair Value Gaps.
- Minimum Filter of FVG: Sets a threshold for detecting Fair Value Gaps.
- Minimum Size of FVG: The specified value for detecting FVGs is set at 10.
- Show OGs: Activates the display of Opening Gaps.
- Minimum Filter of OG: Establishes a size filter for detecting Opening Gaps.
- Show VI: Enables the visualization of Volume Imbalances.
Conclusion
The Imbalance Detection Indicator ICT MT4 is a valuable tool for traders who utilize price action strategies such as ICT and Supply & Demand. By highlighting Fair Value Gaps, Opening Gaps, and Volume Imbalances, the indicator assists traders in spotting potential entry and exit points. Its adaptability makes it a powerful asset across different financial markets, including forex, stocks, and commodities.