Fair Value Gap FVG Indicator MT5
Fair Value Gap (FVG) Indicator for MetaTrader 5
Introduction
The Fair Value Gap (FVG) Indicator is an effective tool designed to spot trading opportunities in MetaTrader 5 by identifying imbalances in supply and demand. These imbalances, known as FVGs, emerge when the price moves aggressively. To explain simply, imagine three candlesticks: the gap between the first and third candlestick forms the "FVG." This indicator highlights these gaps as dynamic boxes—green for bullish FVGs and red for bearish FVGs.
Indicator Specifications Table
Category | ICT - Liquidity - Smart Money |
Platform | Meta Trader 5 |
Skill Level | Intermediate |
Indicator Type | Reversal - Continuation |
Timeframe | Multi-Timeframe |
Trading Style | Day Trading |
Trading Markets | All Markets |
Indicator Overview
The Fair Value Gap (FVG) Indicator identifies supply-demand imbalances and marks these gaps as FVG boxes on the chart. These areas act as essential zones for determining support and resistance, offering traders a better understanding of where to enter or exit positions.
Bullish Scenario
On a 1-hour EUR/USD chart, FVG boxes highlight areas during an uptrend where the price pulls back to the FVG zone before resuming its bullish trajectory. These zones often signal a prime opportunity for initiating long (buy) trades.
Bearish Scenario
On a 1-hour GBP/USD chart, the FVG boxes identify areas where the price pulls back during a downtrend before continuing its bearish movement. These zones provide ideal conditions for entering short (sell) trades.
Settings
- Display Theme: Adjust the indicator’s visuals for dark or light mode.
- Candles for Calculation: Set the number of candles to consider for identifying FVGs (default: 1000).
- Objects Suffix: Add a suffix for the boxes drawn by the indicator.
- Calculation Mode: Choose the calculation method for FVGs.
- Show FVGs: Toggle the display of FVG zones on or off.
- Show Last FVGs Only: Limit the display to the most recent FVG zones.
Summary
The Fair Value Gap (FVG) Indicator is an invaluable resource for identifying key trading zones, including entry and exit points, as well as optimal support and resistance levels. Tailored for MetaTrader 5 users, this tool is particularly advantageous for experienced traders who are adept at analyzing liquidity and supply-demand dynamics.