ICT Sweep + CHoCH + FVG Alerts

The ICT Sweep + CHoCH + FVG Alerts indicator provides a comprehensive framework for identifying institutional-style entry confirmations by automating the detection of liquidity sweeps, market structure shifts, and fair value gaps.

Usage

This tool is designed to identify "Smart Money" setups based on Inner Circle Trader (ICT) concepts. It looks for a specific sequence of price action events to confirm a high-probability entry:

1. Liquidity Sweep: The script monitors for price taking out previous liquidity levels (such as the Previous Day High or Low). A sweep is identified when price moves beyond these levels but fails to hold, indicating a potential reversal.
2. Change of Character (CHoCH): Following a sweep, the indicator looks for a break in market structure. This change of character indicates that the trend direction is shifting in favor of the trade.
3. Fair Value Gap (FVG): To confirm the entry, the tool detects Fair Value Gaps. For a long entry, a bullish FVG must form; for a short entry, a bearish FVG must form.

Long Setup: Occurs when a bearish liquidity sweep (sweep low) is followed by a bullish CHoCH and the formation of a bullish FVG. Short Setup: Occurs when a bullish liquidity sweep (sweep high) is followed by a bearish CHoCH and the formation of a bearish FVG.

Details

The indicator utilizes technical pivots and daily data requests to identify key institutional levels.

• Liquidity Detection: It uses request.security to fetch the previous day's high and low values, which serve as common pools of liquidity for sweeps.
• Market Structure: CHoCH points are determined using pivot high and pivot low calculations over a user-defined lookback period, ensuring that the market structure shifts are significant.
• Gap Logic: FVGs are calculated by comparing the wick relationships of a three-candle sequence. The script allows users to filter out insignificant gaps by setting a minimum tick width.

Settings

• Use Prev Day High/Low for Sweeps: Toggles whether the script uses the previous day's extreme prices as the liquidity sweep reference.
• CHoCH Pivot Lookback: Adjusts the sensitivity of the Change of Character detection by defining the lookback window for swing points.
• Min FVG Width (ticks): Sets a minimum size threshold for Fair Value Gaps to filter out market noise.
• Show Marks on Chart: Toggles the visibility of visual labels and boxes for sweeps, CHoCH points, and FVGs.

FAQ

How do I use the alerts for automation?

The indicator includes specific alert conditions for Long and Short setups. You can create an alert in TradingView and select these conditions to receive notifications or send webhooks to external trading bots.

Can I change the sensitivity of the market structure?

Yes, by adjusting the "CHoCH Pivot Lookback" setting, you can increase or decrease the significance required to trigger a Change of Character label.

How can I access ICT Sweep + CHoCH + FVG Alerts?

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