MTF Fair Value Gap Indicator ULTRA

The MTF Fair Value Gap Indicator ULTRA tool provides a comprehensive multi-timeframe visualization of Fair Value Gaps (FVG) to identify market imbalances and potential areas of interest. It allows traders to detect gaps on various timeframes simultaneously, helping to pinpoint zones where price may experience significant pullbacks or impulses across different asset classes like Forex, stocks, and crypto.

Usage

The indicator can be used to identify liquidity imbalances that often act as magnets for price action. Traders typically look for entries when price revisits these zones, anticipating either a reversal (bounce) or a continuation (blow through). The multi-timeframe (MTF) functionality allows you to see 1-hour or Daily FVGs while charting on a 5-minute timeframe, providing broader market context.

Details

Fair Value Gaps represent areas where price moved so rapidly that an imbalance was created between buyers and sellers. This script tracks these gaps and offers several ways to handle them once price returns to the zone:

• Normal Mitigation: The FVG box is removed once price completely passes through the zone.
• Dynamic Mitigation: The box size shrinks as price "eats" into the imbalance, showing only the remaining unfilled gap.
• Half Mitigation: The zone is removed once price reaches the 50% midpoint of the FVG.
• No Mitigation: Zones remain on the chart even after being filled, useful for historical analysis of structural levels.

Settings

Display & Timeframes

• GMT Timezone offset: Adjusts the label timestamps to match your local time.
• Market Hours Only: Filters FVG creation to specific session times.
• Timeframes (1-6): Enable up to six different timeframes simultaneously. Each includes settings for the timeframe period, maximum number of boxes to display, and custom fill colors for bullish and bearish gaps.

FVG & Mitigation Settings

• Creation Types: Choose to display Bullish, Bearish, or Both types of gaps.
• Mitigation Action: Defines how the box reacts to price intrusion (Normal, Dynamic, Half, or None).
• Mitigation Type: Determines if the wick or the candle body triggers the mitigation.
• Momentum Filter: Uses an ATR-based filter to exclude smaller, less significant FVGs based on price volatility.
• Confirm Mitigation: If enabled, ensures the candle closes before a gap is considered mitigated.

FAQ

How do I use the MTF feature effectively?

Enable higher timeframes like 1H or 4H while trading on a 15M or 5M chart to identify significant structural imbalances that might influence intraday price movement.

Why do some older FVGs disappear?

TradingView has a limit of 500 active boxes/labels and a historical candle limit. If you enable many timeframes or a high "Max FVGs" count, older gaps may be automatically removed to stay within platform limits.

How do I access this indicator?

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