ICT Open Range Gap & 1st FVG

The ICT Open Range Gap & 1st FVG indicator identifies and highlights key market open price action patterns based on ICT methodology. It automatically plots the Open Range Gap (the distance between the previous day's close and the current market open) and the first 1-minute Fair Value Gap (FVG) that forms after 9:31 AM.

Usage

This tool is primarily used by intraday traders focusing on futures or equities during the New York market open at 9:30 AM.

• Open Range Gap: The indicator highlights the gap between the 4:14 PM close (previous day) and the 9:30 AM open. It provides quadrant levels and tracks the "fill" progress. According to ICT, there is a high probability that price will fill at least 50% of this gap within the first 30 minutes of trading.
• 1st Fair Value Gap: The tool detects the very first FVG that appears on the 1-minute timeframe at or after 9:31 AM. This represents an initial imbalance and often acts as a significant support/resistance level or a target for the morning session.
• Multi-Timeframe Analysis: While the logic is based on 1-minute and daily transitions, the indicator can project these levels onto any timeframe, allowing traders to see these crucial levels on higher timeframes like the 5m, 15m, or 1h.

Details

The script performs the following calculations:

• Gap Identification: It monitors the 4:14 PM and 9:30 AM timestamps (EST/EDT) to define the Open Range Gap boundaries.
• Quadrant Division: The gap is divided into four equal parts (25%, 50%, 75%, 100%) to help traders visualize price progression and the 50% "Consequent Encroachment" (C.E.) level.
• FVG Logic: It scans for the first candle formation after 9:30 AM where the low of the first candle is higher than the high of the third candle (bullish FVG) or the high of the first candle is lower than the low of the third candle (bearish FVG).

Settings

General Settings

• Hide above: Prevents the indicator from cluttering charts on timeframes higher than the selected value.
• Limit to last X days: Defines how many historical days the indicator should process.
• Extend to the right by: Adjusts the horizontal length of the projected lines.

First 1m FVG

• 1m FVG: Toggle the visibility of the first 1-minute Fair Value Gap.
• Style Options: Customize colors and line styles for the FVG Open, Close, and C.E. levels.
• Extend Monday's FVG: Keeps the first FVG of the week visible for the entire week.
• Extend All: Extends every daily 1st FVG throughout the week.

Open Range Gap

• Open Range Gap: Toggle the visibility of the gap between the previous close and current open.
• Quadrants: Displays horizontal levels representing 25%, 50%, and 75% of the gap.
• Fill: Visualizes the price progress as it moves into the gap.
• Extend to end of day: If disabled, the gap lines will stop at 10:00 AM; if enabled, they extend until the market close.

FAQ

How do I use the 50% level?

The 50% level of the Open Range Gap is known as the Consequent Encroachment. In ICT methodology, price often treats this level as a significant pivot point during the initial 30 minutes of the session.

Why doesn't the FVG appear exactly at 9:30 AM?

The script is programmed to look for the first valid FVG starting at 9:31 AM or later. This is because the 9:30 AM candle itself is often too volatile or represents the start of the gap rather than a completed FVG structure.

How can I get access to this tool?

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