ICT Entry V1

The ICT Entry V1 indicator is a comprehensive price action trading tool that automates the identification of Fair Value Gaps (FVG), Inverse Fair Value Gaps (iFVG), and liquidity sweeps to highlight high-probability entry setups. It aims to simplify the execution of ICT-based strategies by validating market structure and providing clear visual cues for supply and demand shifts.

Usage

The script automates the detection of Buy and Sell setups based on specific price action criteria:

• Buy Setup: Occurs when there is a liquidity sweep on the demand side (price closes above the liquidity level), followed by the formation of a demand zone where an iFVG is positioned above an FVG. The system ensures the gap between these zones falls within a user-defined range and verifies a bullish market structure before suggesting a pending order.
• Sell Setup: Triggered by a liquidity sweep on the supply side (price closes below the liquidity level), with a supply zone forming where an iFVG is below the FVG. The system verifies a bearish market structure and valid gap distance before identifying the entry zone.

Details

The indicator relies on several core mechanical concepts:

• iFVG Mechanism: Unlike standard FVGs, an Inverse Fair Value Gap is confirmed only when a candle body closes through the FVG zone, indicating a supply-to-demand or demand-to-supply flip. Wicks are not considered valid confirmations.
• Swing Validation: Market structure swings are validated using a pivot length mechanism. It detects structure breaks formed by candles making new highs or lows, ensuring that liquidity levels are based on significant price rotations rather than minor fluctuations.
• Order Management: The script includes logic to prevent overlapping positions and automatically cancels pending orders if a new signal appears on the opposite side, if price exits a designated time session, or if a liquidity sweep occurs in the opposite direction.

Settings

Entry Condition

• Risk Reward Ratio: Sets the target profit relative to the stop loss.
• Stop loss ATR: Defines the ATR period and multiplier used for calculating dynamic stop loss levels.
• Entry Zone: Adjusts where the order is placed within the FVG (e.g., at the midpoint).
• Liquidity Pivot Strength: Determines the strength of the swings used for liquidity detection.
• Trend Following: Filters signals to ensure they align with the prevailing market structure.

Time Filter

• Session Toggles: Allows users to restrict signal generation to specific trading sessions (New York, London, Tokyo, Sydney).

Display Options

• FVG/iFVG Visibility: Customize the colors and visibility of the identified gap zones.
• Liquidity & Swing: Adjust the visual style, labels, and quantity of historical liquidity levels shown on the chart.

FAQ

How do I use the iFVG confirmation?

An iFVG is confirmed when a candle close breaks through an existing FVG zone. Ensure the "Valid by" setting is set to "Close" for the strictest interpretation of this ICT concept.

What causes a pending order to cancel?

Pending orders are removed if a new signal is generated, if the price sweeps liquidity on the opposite side, or if the active time session ends, depending on your "Cancel Pending" settings.

How can I access ICT Entry V1?

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