Vacuum Block ICT indicator MT4
Vacuum Block ICT Indicator MT4
The Vacuum Block ICT indicator MT4 is designed to detect and analyze price gaps within the ICT (Inner Circle Trader) trading methodology. These gaps often emerge during high-impact events such as FOMC statements, NFP releases, or significant geopolitical incidents.
Since these voids represent areas with limited liquidity and unfilled orders, the price naturally gravitates toward filling them before resuming its prevailing trend.
Indicator Table
| Category | ICT - Liquidity - Smart Money |
| Platform | MetaTrader 4 |
| Skill Level | Intermediate |
| Indicator Type | Continuation - Reversal |
| Timeframe | Multi-timeframe |
| Trading Style | Intraday Trading |
| Market | Forex - Cryptocurrency - Stocks - Commodities |
Indicator Overview
Sudden price gaps occur when an asset moves sharply with minimal or no transactional activity, usually due to extreme supply and demand shifts combined with high volatility. This indicator highlights two types of vacuum blocks—bullish and bearish—marked in orange on the price chart. It helps traders refine their decision-making process when navigating upward or downward trends.
Vacuum Block in an Uptrend
A bullish vacuum block is identified when the opening price of a new candlestick is positioned above the closing price of the prior candle. In the example below, a one-minute USD/JPY chart illustrates how the price revisits the gap with a long wick, triggering liquidity within this region before continuing in its initial trend direction.
Traders often seek confirmations—such as shifts in market structure on lower timeframes—to pinpoint optimal buy entries.
Vacuum Block in a Downtrend
A bearish vacuum block occurs when the price retraces into the void after its formation, triggering liquidity and pending orders before resuming its downward movement. The AUD/USD chart on a 30-minute timeframe provides a clear example of this pattern.
Once confirmation signals appear, traders may initiate a sell position while setting the stop-loss at the peak of the vacuum block.
Indicator Settings
- Chart and object color theme: Defines the background color scheme of the chart.
- Vacuum block extension limit: Determines the number of displayed vacuum block areas (default: 5).
Conclusion
Effectively utilizing the Vacuum Block ICT indicator MT4 requires a deep understanding of price behavior and the fundamental events that create these voids. Traders should exercise patience, waiting for price retests of the gap, and use appropriate confirmations before executing a trade with confidence.
