ICT Institutional Order Flow (fadi)

The ICT Institutional Order Flow (fadi) indicator provides a comprehensive framework for analyzing institutional order flow and predicting price targets based on ICT principles. It integrates market structure analysis, liquidity tracking, displacement monitoring, and imbalance identification to offer a holistic view of price action.

Usage

The Usage section describes how the script can be used to interpret price action through various institutional concepts.

ICT Market Structure

The tool automatically categorizes pivot points into three distinct tiers to help identify the underlying trend and potential reversal points:

• Short Term High/Low (STH/STL): A 3-candle pattern where a central high is surrounded by lower highs, or a central low is surrounded by higher lows.
• Intermediate Term High/Low (ITH/ITL): Higher-level pivots formed when an STH is flanked by lower STHs, or an STL is flanked by higher STLs.
• Long Term High/Low (LTH/LTL): The most significant structural points, formed when an ITH is flanked by lower ITHs, or an ITL is flanked by higher ITLs.

Liquidity and Equal Levels

The indicator marks liquidity pools residing at structural pivot points. Liquidity under ITLs and LTLs is treated as a higher-probability target for price. Additionally, the script identifies Relative Equal Highs and Lows (EQH/EQL), which represent significant areas of "buy-side" or "sell-side" liquidity that the market often seeks to "sweep" before reversing.

Displacement and Imbalances

Users can monitor institutional activity through:

• Displacement: Highlights above-average price moves that indicate strong institutional participation.
• Fair Value Gaps (FVG): Identifies 3-candle imbalances where price moves too quickly, leaving a gap.
• Volume Imbalances & Open Gaps: Detects gaps between candle bodies or session opens to find potential support/resistance zones.

Details

The script executes a hierarchical logic to determine market structure. It first identifies Short Term pivots, then uses those results to calculate Intermediate pivots, and finally identifies Long Term pivots. Note that the specific ICT nuance where an STH/STL is promoted to an ITH/ITL due to a Fair Value Gap fill is not included in this calculation.

The displacement calculation is derived from the "Visualizing Displacement" concept by TFO, designed to filter out market noise and highlight high-momentum candles. Imbalances are managed dynamically, with settings allowing for the "mitigation" of gaps once price returns to fill them.

Settings

ICT Market Structure

• ST/IT/LT Show: Toggles the visibility of Short, Intermediate, and Long-term structure labels.
• Label Format: Customizes the icon (e.g., circles, triangles, text) and size for structural markers.
• Maximum number of labels: Limits the amount of historical structural labels displayed.

Liquidity Levels

• ST/IT/LT Liquidity Show: Enables horizontal lines at structural highs and lows representing liquidity.
• Open/Claimed Style: Adjusts the line style for active liquidity versus liquidity that has already been "swept" by price.
• Extend: Controls how far the liquidity lines extend into the future.

Relative Equal Highs and Lows

• Equal Levels: Toggles the detection of EQH/EQL.
• Distance Tolerance: Adjusts how strictly the script defines "equal" prices between two pivots.
• Highlight: Shades the area between equal points to emphasize the liquidity pool.

Imbalances (FVG, Volume, Gaps)

• Show: Toggles specific imbalance types (FVG, Volume Imbalance, or Open Gaps).
• Mitigated Show: Displays gaps even after they have been filled.
• CE Show: Displays the "Consequent Encroachment" (50% level) of the imbalance.

FAQ

How do I interpret the different label sizes? By default, Short Term pivots use tiny labels, Intermediate use small, and Long Term use normal. This visual hierarchy helps you quickly identify which structural points are most significant on the current timeframe.

What is the "Distance Tolerance" in Equal Levels? It defines the sensitivity for identifying double tops or bottoms. A higher tolerance will group pivots that are near each other but not at the exact same price as equal levels.

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.