ICT FVG

The ICT FVG indicator highlights Fair Value Gaps (FVG) on the price chart, providing traders with a visual tool to identify imbalances in market delivery.

Usage

The ICT FVG tool can be used to identify potential areas of institutional interest where price may return to rebalance.

• Bullish FVG: Identified when the high of the first candle is lower than the low of the third candle in a three-candle sequence. This creates a gap that is filled with a green box.
• Bearish FVG: Identified when the low of the first candle is higher than the high of the third candle. This creates a gap that is filled with a red box.
• Midpoint Analysis: The indicator includes an optional midline representing the 50% level (Consequent Encroachment) of the gap, which is often used as a precise level for price sensitivity.
• Visual Customization: Users can adjust the lookback offset, the number of candles the box extends, and the total number of displayed boxes to clean up the chart.

Details

A Fair Value Gap (FVG) is a concept within Inner Circle Trader (ICT) methodology describing an imbalance where only one side of the market (buy or sell) was offered during a candle's formation. This script identifies these gaps by comparing the price action of three consecutive candles. It calculates the space between the high/low of the first candle and the low/high of the third candle. If a gap exists and meets the "Min Gap Size" requirement, the tool draws a box starting from the second candle.

Settings

General Settings

• Min Gap Size: Filters out small gaps by requiring the FVG to be a minimum number of price points wide.
• Show Bullish/Bearish FVG: Toggles the visibility of specific gap types.
• Show FVG borders: Enables or disables borders around the gap boxes.
• Border Color: Sets the color for the box borders if enabled.
• Offset FVG: Adjusts whether the FVG box starts at the first or second candle of the formation.
• Bullish/Bearish FVG Color: Customizes the fill color and transparency for the gaps.

Styling & Limits

• FVG mid gap lines: Toggles the visibility of the 50% midpoint line.
• Size of FVG in candles: Determines how many bars into the future the box is projected.
• FVG C/E Line Style: Changes the appearance of the midpoint line (Dotted, Filled, or Striped).
• Number of FVG Boxes to Display: Controls the maximum number of recent bullish and bearish boxes shown on the chart to maintain performance.

FAQ

How do I use the ICT FVG?

You can use it to identify imbalances where price might gravitate toward for a retest or use the 50% midpoint as a support or resistance level.

Can I filter out very small gaps?

Yes, you can use the "Min Gap Size" setting to ensure only significant market imbalances are highlighted.

How do I access ICT FVG?

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