Implied Fair Value Gap (IFVG) ICT Hidden FVG OTE

The Implied Fair Value Gap (IFVG) ICT Hidden FVG OTE indicator identifies specific three-candlestick formations that represent hidden supply and demand zones within the market. By automating the detection of these "implied" gaps, the tool helps traders pinpoint potential price reversal points and high-liquidity areas that are not immediately visible through conventional Fair Value Gap analysis.

Usage

The indicator is used to identify hidden support and resistance zones based on Bullish and Bearish IFVG patterns. These zones serve as high-probability entry and exit points.

• Bullish IFVG: Occurs when a large bullish candle is formed where the wicks of the preceding and succeeding candles overlap the body of the middle candle. This creates a demand zone. Traders typically look for buy entries when the price retraces to this zone during an uptrend.
• Bearish IFVG: Occurs when a large bearish candle is formed with adjacent candle wicks overlapping its body. This creates a supply zone. Traders use this as a signal for potential short entries when price returns to the level during a downtrend.
• Risk Management: Users can utilize the built-in filters (Aggressive to Defensive) to narrow down the zones based on their specific risk tolerance and the volatility of the asset.

Details

The concept of the Implied Fair Value Gap was introduced by Inner Circle Trader (ICT). Unlike traditional FVGs which leave an open price gap between wicks, the IFVG focuses on the "implied" value based on the relationship between the middle candle's body and the surrounding wicks.

The script implements several filtration layers using ATR (Average True Range) to determine the significance of the gap. For example, "Defensive" settings require a larger candle relative to the ATR and specific body-to-wick ratios to ensure the identified zone represents a strong market anomaly.

Settings

Global Setting

• Implied Block Validity Period (Bar): Determines how many bars an identified zone remains active on the chart before expiring.
• Mitigation Level OB: Sets the specific price point within the block that triggers a mitigation signal (Proximal, 50% Mean Threshold, or Distal).

Implied Filter

• Implied Filter: Toggles the filtration system on or off.
• Implied Filter Type: Selects the strictness of the detection (Very Aggressive, Aggressive, Defensive, Very Defensive). Stricter settings require higher volatility and specific candle body proportions.

Display Setting

• Show Demand/Supply Implied Block: Toggles the visibility of the bullish and bearish zones.
• Color Settings: Allows customization of the colors used for supply and demand zones.

Alert Setting

• Alert ICT Implied Block Mitigation: Enables notifications when price interacts with a detected zone.
• Message Frequency: Controls how often alerts are triggered (All, Once Per Bar, or Per Bar Close).

FAQ

How do I access the Implied Fair Value Gap (IFVG) ICT Hidden FVG OTE?

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

What is the difference between a traditional FVG and an IFVG?

A traditional FVG is a visible gap between the wicks of the first and third candles in a sequence. An IFVG is a "hidden" gap where the wicks overlap the middle candle's body, requiring specific calculations to identify the underlying supply or demand imbalance.

Which Filter Type should I use?

The "Aggressive" settings identify more zones but may include weaker signals. "Defensive" settings filter for high-momentum candles relative to ATR, identifying zones that are statistically more likely to act as strong support or resistance.