CandelaCharts - First P.FVG Killzone

The CandelaCharts - First P.FVG Killzone indicator automatically identifies user-defined trading sessions and highlights the first Fair Value Gap (FVG) that forms within those specific time windows. This tool helps traders visualize institutional imbalances and session ranges to identify high-probability intraday setups based on ICT concepts.

Usage

The Usage section describes how the script can be used to identify key liquidity zones and entry points. The indicator maps out sessions such as Asia, London, and New York, then monitors price action to detect the very first institutional imbalance (FVG) that occurs.

• Intraday Reference Points: The first FVG often dictates the market's directional bias for the remainder of the session. Traders use these zones as dynamic support or resistance levels for trend continuations or mean reversion entries.
• Session Range Tracking: The tool tracks the High, Low, and Mean of each session. These levels are frequently used as targets or points of invalidation.
• Sweep Probabilities: Use the built-in statistics to understand the historical likelihood of a session's high or low being "swept" (exceeded) by subsequent price action, providing a statistical edge for liquidity-based strategies.

Details

The script executes by scanning the price action within defined session strings (e.g., "0930-1100"). Once the session begins, the algorithm looks for a Fair Value Gap, which is defined as a three-candle sequence where an imbalance exists between the first candle's wick and the third candle's wick.

• First Bar Detection: A specific setting allows the script to include imbalances that complete on the very first bar of a session, even if the preceding candles were outside the session boundary.
• Extension Logic: The "First Presented FVG" can be projected across the chart using three modes: Fixed (set length), Session End (stops at the end of the killzone), or Full (continues to the current price).
• Statistical Engine: The indicator calculates sweep probabilities using two methods. "Total Sweep" checks if a level was ever breached in the lookback period, while "Session Overlap" specifically checks if the level was breached during another active killzone.

Settings

Imbalance Settings

• Filter: Choose to display all, only bullish, only bearish, or no FVGs.
• Mean: Toggles the midline visibility for the identified FVG.
• Border: Toggles the border visibility around the FVG box.
• Labels: Displays text labels identifying the FVG.
• Extend: Controls how far the FVG zone projects to the right (Fixed, Session End, or Full).
• First Session Bar: If enabled, detects imbalances that conclude on the first bar of the session.

Sessions (1st to 8th)

• Show: Toggles the specific session visibility.
• Name: Custom label for the session (e.g., "London").
• Time: The specific time range for the session in HHMM-HHMM format.
• Colors: Individual color settings for session boxes and internal bullish/bearish imbalances.

Styles & Statistics

• Lines/Width: Customizes the appearance of session range lines.
• Show Box/Background: Toggles the visual container for the trading session.
• Show High/Low/Mean: Toggles the horizontal extension lines for session extremes.
• Show Statistics: Enables the historical probability overlay for session sweeps.
• Calculation Method: Switches between "Total Sweep" and "Session Overlap" for probability math.

Dividers

• Show Divider: Places vertical lines at the start of sessions.
• TF Separators: Places vertical lines based on a user-defined timeframe (e.g., Daily or 4H separators).

FAQ

How do I use the First P.FVG as a signal? The first FVG is often viewed as a "displacement" sign. When price returns to this zone later in the session, it is frequently used as an entry point for a continuation trade in the direction of the initial imbalance.

Can I set up custom session times? Yes, the indicator includes slots for up to eight sessions, all of which have customizable time inputs to match your local timezone or specific trading models like ICT or Harmonic Series.

How do I get access to the CandelaCharts - First P.FVG Killzone? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.