XAUUSD 1H – FVG Buy/Sell Signals

The XAUUSD 1H – FVG Buy/Sell Signals indicator identifies high-probability entry points by detecting Fair Value Gaps (FVG) and requiring a deep retest before confirming price direction with trend and momentum filters. This tool is designed to provide clean, actionable signals on the 1-hour gold chart without cluttering the interface with zone boxes.

Usage

The indicator monitors the chart for 3-bar Fair Value Gaps. Once an imbalance is detected, it enters a "tracking" mode. A signal is only printed when price revisits the gap by a user-defined percentage (retest depth) and subsequently closes outside the gap with significant candle body strength.

This tool can be used for:

• Trend Following: By using the built-in EMA 50/200 filter, users can ensure signals only fire in the direction of the established market regime.
• Momentum Trading: The ADX filter ensures that signals are only generated during periods of sufficient trend strength, helping to avoid whipsaws in sideways markets.
• Selective Entries: Instead of trading every touch of an FVG, the "Deep Retest" logic forces the script to wait for price to fill a specific portion of the imbalance before looking for a reversal.

Details

The script utilizes a non-repainting logic that executes on bar close. It stores detected FVGs in arrays and manages their expiration based on time (bars) or price invalidation (if price closes completely through a zone). The confirmation logic requires the signal candle's body to be at least a certain multiple of the ATR, ensuring that the breakout from the FVG has genuine intent.

Settings

Trend

• EMA Fast/Slow: Adjusts the periods for the two Exponential Moving Averages used for trend detection.
• Require trend: Toggles whether the script must align with the EMA 50 > EMA 200 (for buys) or EMA 50 < EMA 200 (for sells).

FVG Detection

• Min FVG size (points): Sets the minimum gap size required to qualify as a valid zone.
• Expire FVG after X bars: Determines how long a zone remains active for potential retests.

Retest Confirmation

• Min retest depth (%): Defines how deep price must penetrate the FVG zone to validate the retest.
• Close buffer (pts): Adds an extra distance requirement beyond the zone edge for the signal candle close.
• Min candle body ≥ ATR×: Sets the required volatility-adjusted size of the confirmation candle.
• Delete zone after signal: When enabled, the FVG is removed from memory once a signal is generated, preventing multiple signals from one gap.

Strength / Volatility Filters

• ADX length/Min ADX: Controls the threshold for trend strength.
• ATR length: Adjusts the lookback period for volatility calculations.

FAQ

How do I use this on different timeframes? While optimized for the XAUUSD 1H chart, you can adjust the "Min FVG size" and "Close buffer" settings to suit lower or higher timeframes and different symbols.

What does the "Deep Retest" logic do? It prevents premature entries. Rather than firing a signal as soon as price touches the edge of a gap, it requires price to move into the gap (e.g., 50% depth) before looking for a strong close back out of it.

How can I access this tool? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.