Simple ICT Order Blocks and Fair Value Gaps

The Simple ICT Order Blocks and Fair Value Gaps indicator identifies and highlights institutional footprints such as Order Blocks (OB) and Fair Value Gaps (FVG) on your chart. It provides traders with a visual framework to spot potential liquidity areas and price imbalances based on Inner Circle Trader (ICT) concepts.

Usage

The indicator can be used to identify key supply and demand zones where institutional activity is likely present.

• Fair Value Gaps (FVG): These represent price imbalances where price moves rapidly, leaving a gap between the wicks of three consecutive candles. Users can visualize these as colored boxes or by coloring the specific bars.
• Order Blocks (OB): These are specific candles representing institutional buying or selling. The tool distinguishes between "Naked OBs" (immediate FVG formation) and "Covered OBs" (delayed FVG formation). An Order Block is validated only when the candle forming the subsequent FVG closes away from the OB.
• Mitigation: The script tracks when these zones are "mitigated" (tested by price). Users can choose whether mitigation occurs on a "Wick" touch or a "Close" through the zone.
• HTF Analysis: You can enable High Time Frame (HTF) FVGs to see imbalances from higher periodicities overlaid on your current chart.

Details

The indicator distinguishes between two types of Order Blocks:

• Naked OB: An order block where the immediate next candle forms a Fair Value Gap. The OB's high or low directly contributes to the FVG formation.
• Covered OB: An order block where the immediate next candle does not form an FVG; instead, other candles exist between the OB and the eventual FVG formation. To manage performance and the TradingView box limit (500), the script includes a "Simple Version" toggle and an option to color candles instead of drawing boxes for historical data.

Settings

General Settings

• Mitigation Type: Select "Close" or "Wick" to determine when a zone is considered invalidated.
• Show simple version: Keeps the chart clean by preventing boxes from extending indefinitely to the right.

Order Blocks

• Show OB Boxes: Enables the drawing of rectangular zones for Order Blocks.
• Delete Mitigated OB: Automatically removes the box once price has mitigated the zone.
• Colour OB Candles: Changes the color of the actual candles identified as Order Blocks.
• Colors: Customizable colors for bullish and bearish OB borders, boxes, and candles.

Fair Value Gap

• Show FVG Boxes: Enables the drawing of rectangular zones for local time frame imbalances.
• Delete Mitigated FVG: Removes FVG boxes once price action has filled the imbalance.
• Colors: Customizable colors for bullish and bearish FVG borders and boxes.

HTF Fair Value Gap

• HTF Resolution (1 & 2): Choose up to two higher time frames (e.g., 1H, 4H) to display their respective FVGs on the current chart.
• HTF Colors: Distinct color settings for higher time frame imbalances to differentiate them from local gaps.

FAQ

How do I access the Simple ICT Order Blocks and Fair Value Gaps?

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

Why are some boxes disappearing?

This occurs if "Delete Mitigated" is enabled or if the TradingView limit of 500 boxes is reached. Use the "Color OB Candles" option to keep track of older zones without using box objects.

What is the difference between a Naked and Covered OB?

A Naked OB is immediately followed by a price gap (FVG), whereas a Covered OB has one or more candles between itself and the gap it eventually created.