Time-Based Fair Value Gaps (FVG) with Inversions (iFVG)

The Time-Based Fair Value Gaps (FVG) with Inversions (iFVG) indicator identifies market imbalances within specific time windows and tracks their evolution into inverted support and resistance zones. This tool is specifically designed for institutional trading strategies, providing precision in identifying high-probability setups during key market macros.

Usage

The script is optimized for lower timeframes, specifically the 1-minute and 5-minute charts. It detects gaps where the price moves rapidly, leaving an imbalance that the market often returns to fill.

• Time-Based Filtering: The indicator allows users to enable specific 10-minute windows (e.g., :00–:10, :50–:60) to align with institutional "kill zones" or hourly transitions.
• Session-First FVGs: By enabling "Show only 1st presented FVG," the tool focuses exclusively on the initial market imbalance during the New York AM (9:30–10:00 AM EST) or PM (1:30–2:00 PM EST) sessions.
• Inversion Tracking: When price closes through an existing FVG, it is converted into an Inverted Fair Value Gap (iFVG). These zones act as support or resistance for future price action.
• Retest Signals: The script generates visual markers (triangles) when price retests an iFVG. Users can choose between "Close" (conservative) or "Wick" (aggressive) confirmation for these signals.

Details

This tool builds upon foundational Fair Value Gap concepts by incorporating strict time filters and institutional logic.

• Detection Logic: A bullish FVG is formed when a candle's low is higher than the high of the candle two periods ago. Conversely, a bearish FVG forms when a candle's high is lower than the low of two candles prior.
• Mitigation: The indicator employs "Mitigation Removal" to keep charts clean. If price fully trades through a gap, it is either removed or converted to an iFVG based on the logic of institutional order flow, where old imbalances become new pivots.
• ATR Filtering: An integrated ATR filter ensures that only significant price gaps are displayed, filtering out minor market noise that does not represent true institutional displacement.

Settings

General Settings

• Show Last: Determines the number of recent inverted FVGs to display on the chart.
• Show only 1st presented FVG: Limits detection to the first gap found during the AM/PM sessions.
• Time Window Checkboxes: Individual toggles for each 10-minute segment of an hour to filter FVG detection.
• Signal Preference: Selects whether iFVG retest signals trigger on a candle Close or a Wick touch.

Filter & Display

• Use ATR Filter: Toggles the size-based filter for gaps.
• ATR Multiplier: Adjusts the threshold for the ATR filter (higher values require larger gaps).
• Remove Mitigated FVGs: Removes zones once price has closed through them.
• Show FVG Labels: Toggles text labels for bullish and bearish zones.
• Timezone Offset: Adjusts the script’s internal clock to match EST/EDT for New York-based sessions.

FAQ

How do I access Time-Based Fair Value Gaps (FVG) with Inversions (iFVG)?

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

Why aren't any FVGs showing on my 1-hour chart?

The indicator is designed for precision on low timeframes (1-5m). Using it on timeframes of 1 hour or higher will trigger a warning and may result in no gaps being displayed due to the time-filtering logic.

What is the difference between a normal FVG and an iFVG?

A normal FVG represents an initial imbalance (a "gap" in price delivery). An iFVG (Inverted FVG) is a gap that has been traded through and is now expected to act as the opposite polarity (support becoming resistance or vice versa).