FVG + OB + RSI Divergence + Volume Spikes

The FVG + OB + RSI Divergence + Volume Spikes indicator provides a comprehensive market structure analysis tool by combining four essential trading concepts into a single visual overlay to help traders identify high-probability confluence zones.

Usage

The indicator can be used to spot confluences between price action inefficiencies, institutional levels, momentum shifts, and volume anomalies.

• Fair Value Gaps (FVG): These are marked by small squares on the chart. They highlight areas of price imbalance where the market may return to rebalance or "fill" the gap.
• Order Blocks (OB): Represented by triangles, these mark potential institutional footprints where significant buying or selling pressure originated, often based on engulfing candle structures.
• RSI Divergence: Labels appear on the chart when a discrepancy between price movement and RSI momentum is detected. A Bullish Divergence suggests a potential upward reversal, while a Bearish Divergence suggests a potential downward reversal.
• Volume Spikes: Small blue triangles appear above bars when the trading volume significantly exceeds its moving average, signaling high interest or "smart money" participation.

Traders often look for setups where multiple signals align, such as an RSI Divergence forming within a recently created Order Block or a price retest of a Fair Value Gap during a Volume Spike.

Details

The indicator calculates several distinct metrics to provide its signals:

1. Market Structure: It identifies Fair Value Gaps by looking for gaps between the low of the first bar and the high of the third bar (and vice versa).
2. Order Blocks: It detects engulfing patterns where the current candle closes beyond the previous candle's range to mark potential institutional entry points.
3. Momentum: RSI divergences are calculated using a 5-bar and 10-bar lookback comparison to find price extremes that are not confirmed by the RSI.
4. Volume: It utilizes a Simple Moving Average (SMA) of volume as a baseline to detect spikes that exceed a user-defined sensitivity threshold.

Settings

• RSI Length: Determines the period used for the RSI calculation for divergence detection.
• Volume Spike Multiplier: Sets the sensitivity for volume spikes; a higher value requires more significant volume to trigger a signal.
• Order Block Lookback: Adjusts the period used to identify valid Order Block formations.
• FVG Lookback: Adjusts the period used to identify and maintain Fair Value Gap signals.

FAQ

How do I use the confluences provided by this indicator?

The strongest signals typically occur when an RSI Divergence and a Volume Spike align near an Order Block or Fair Value Gap, suggesting a high-probability reversal or continuation zone.

Does this indicator repaint?

No, the FVG + OB + RSI Divergence + Volume Spikes indicator is designed to be non-repainting, with signals confirmed upon the close of the bar.

How can I access FVG + OB + RSI Divergence + Volume Spikes?

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