Initial Imbalance [First FVG - ICT] v1

The Initial Imbalance [First FVG - ICT] v1 indicator identifies the first Fair Value Gap (FVG) appearing at the start of a user-defined trading session to help traders spot early price imbalances. Inspired by ICT concepts, the tool highlights these key zones and provides optional session context to improve decision-making during the opening range.

Usage

The tool is primarily used to identify the "Initial Imbalance" of a session by locating the very first FVG that forms after a specific time. Traders can use this zone as a point of interest (POI) for potential trend continuation or reversals.

• Session Start: The script begins looking for imbalances at the user-defined "Session Hour" and "Session Minute."
• FVG Identification: Once the session starts, the indicator waits for the first valid bullish or bearish FVG. A bullish FVG is formed when the low of the current candle is higher than the high of the candle two periods ago. A bearish FVG is formed when the high of the current candle is lower than the low of the candle two periods ago.
• Session Range: Users can enable session high/low lines to visualize the developing range of the session alongside the identified imbalance.
• Mitigation: The indicator tracks when price closes through the identified FVG, marking it as mitigated and visually updating the box.

Details

The indicator focuses on the "Initial Imbalance," a concept where the first significant gap in price often sets the tone for the session's direction. To ensure quality, the script includes logic to filter out insignificant gaps based on volatility or price distance.

The tool uses an overlay format, drawing boxes for the detected FVGs. These boxes extend until the next session starts or until the FVG is mitigated. If a filter is applied, the script compares the FVG size against the specified ATR multiple or point value before confirming the zone.

Settings

Session

• Session Hour: Sets the hour (0-23) when the indicator starts looking for the first FVG.
• Session Minute: Sets the minute (0-59) when the indicator starts looking for the first FVG.

Filter

• FVG Filter Type: Determines how to filter gaps. "None" shows the first FVG regardless of size; "ATR" uses a volatility-based threshold; "Points" uses a fixed price distance.
• ATR Multiple: The multiplier for the 14-period ATR used to determine the minimum required size of an FVG (only active when Filter Type is ATR).
• Minimum Points: The minimum price points required for an FVG to be valid (only active when Filter Type is Points).

Visuals & Colors

• Show Session High/Low Lines: Toggles the visibility of horizontal lines tracking the session's highest and lowest points.
• Bullish FVG Color: Selects the color for bullish zones; the script automatically handles transparency for the background and border.
• Bearish FVG Color: Selects the color for bearish zones; the script automatically handles transparency for the background and border.

FAQ

How do I access Initial Imbalance [First FVG - ICT] v1?

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

What constitutes a "mitigated" FVG in this script?

An FVG is considered mitigated when the closing price of a subsequent candle moves entirely through the FVG zone (below the bottom for bullish FVGs or above the top for bearish FVGs).

Can I track multiple FVGs per session?

No, this specific tool is designed to identify only the "Initial Imbalance," meaning it will only plot the first valid FVG that occurs after your specified session start time.