ICT Setup 01 FVG + Liquidity Sweeps/Hunt Alerts

The ICT Setup 01 indicator identifies specific institutional trading setups by combining Fair Value Gaps (FVG) with liquidity sweeps and stop hunts to highlight high-probability reversal zones.

Usage

The script identifies Fair Value Gaps as signs of market imbalance caused by institutional activity. When price returns to these zones, the tool looks for specific "Hunt" or "Sweep" behavior to issue signals.

• Bullish Setup: Occurs when price retraces into a Demand FVG. A signal is triggered when a candle wick penetrates the FVG (liquidity hunt) but the candle body closes outside the zone.
• Bearish Setup: Occurs when price retraces into a Supply FVG. A signal is triggered when a wick hunts the liquidity within the zone while the body remains outside.
• Sweeps vs. Hunts: Users can toggle between "Hunt" mode (wicks must stay within the FVG boundaries) and "Sweep" mode (wicks can extend past the distal level of the FVG, provided the body does not close inside).
• Risk Management: The "Level in Low-Risk Zone" feature filters signals so that Demand FVGs are only valid in the Discount area and Supply FVGs in the Premium area.

Details

The script utilizes a refined FVG detection algorithm based on ATR (Average True Range) to ensure the identified gaps represent significant market momentum. It also includes a "Refining System" that dynamically adjusts the proximal level of an FVG if a candle body partially enters the zone, optimizing the entry point for subsequent hunts. The logic ensures that once a zone is "violated" by a candle body closing through it, the zone is invalidated.

Settings

• FVG Detector Multiplier Factor: Adjusts the sensitivity of FVG detection using an ATR multiplier. Higher values identify larger, more significant gaps.
• FVG Validity Period: Determines how many candles an identified FVG remains active before expiring.
• Level in Low-Risk Zone: Enables Premium/Discount filtering to ensure setups occur at favorable price levels.
• Issuing Signals Method: Choose between "Hunt" (strict zone boundaries) or "Sweeps" (allows wicks to exceed zone boundaries).
• Number of Signals Allowed from a Zone: Limits how many times a single FVG can trigger an alert.
• Signal after Hunts/Sweeps: Sets the script to only alert after a specific number of liquidity tests (e.g., alert on the 2nd or 3rd hunt).
• Show or Hide: Controls the visibility of historical setups to keep the chart clean.
• Alert Name / Message: Customizes the notification content for automated trading or remote monitoring.

FAQ

How do I interpret a "Sweep" signal versus a "Hunt" signal? A "Hunt" signal requires the price wick to stay within the FVG box, whereas a "Sweep" allows the price to briefly move beyond the box (clearing further liquidity) as long as the candle body does not close inside the FVG.

Can I filter for only the most powerful FVGs? Yes, by increasing the "FVG Detector Multiplier Factor," the script will only highlight FVGs formed by price moves that significantly exceed the current Average True Range.

How can I access ICT Setup 01? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.