ICT Entry V2

The ICT Entry V2 indicator is a comprehensive trading tool designed to identify high-probability trade setups based on liquidity sweeps, Fair Value Gaps (FVG), and inverted Fair Value Gaps (iFVG). It aims to automate the detection of supply-to-demand flips and market structure shifts to provide precise entry and exit points.

Usage

The indicator monitors the market for specific price action sequences to generate Buy or Sell signals.

Buy Setup Example:

1. Liquidity Sweep: Price sweeps liquidity on the demand side and closes above that level.
2. Zone Formation: A demand zone is established consisting of an iFVG and an FVG, with the FVG situated above the iFVG.
3. Gap Validation: The distance between the iFVG and FVG must fall within the user-defined Minimum and Maximum ATR-based range.
4. Trend Alignment: The Market Structure must be confirmed as Bullish.
5. Execution: A pending order is placed at the upper boundary of the iFVG, with a stop loss at the lower boundary (adjustable via ATR or Entry Zone settings).

Sell Setup Example:

1. Liquidity Sweep: Price sweeps liquidity on the supply side and closes below that level.
2. Zone Formation: A supply zone is formed where the FVG is located below the iFVG.
3. Trend Alignment: Market Structure must be Bearish.
4. Execution: A pending order is placed at the lower boundary of the iFVG, with a stop loss at the upper boundary.

The system automatically cancels pending orders if a new signal appears in the opposite direction, the time session expires, or a new liquidity sweep invalidates the current bias.

Details

The core logic revolves around the "flip" mechanism of Fair Value Gaps. An iFVG is confirmed only when a candle body closes through a previously established FVG; a simple wick penetration is insufficient.

Market structure swings are validated using a "Pivot Strength" mechanism. This system detects structure breaks by identifying candles that form new highs or lows relative to a specific lookback period. The indicator also incorporates Premium and Discount zone filtering to ensure trades are taken at favorable price levels relative to the current swing.

Settings

Entry Conditions

• Risk Reward Ratio: Sets the target profit level relative to the initial risk.
• Stop Loss ATR / X: Determines the stop loss distance based on a multiple (X) of the Average True Range over a specific length.
• Entry Zone: Adjusts where the order is placed within the entry box (e.g., 50 for the midpoint).
• iFVG Overlap FVG / Mix: Toggles whether the iFVG and FVG boxes can overlap or must maintain a specific gap.
• Gap Min/Max: Filters signals based on the distance between the FVG and iFVG using ATR-based multipliers.
• Filter Size FVG/iFVG: Allows users to exclude gaps that are too small or too large based on ATR.
• Liquidity Pivot Strength: Adjusts the sensitivity of swing detection for liquidity levels.
• Trend Following Conditions: When enabled, the indicator only takes trades in the direction of the dominant market structure.
• Strength / Valid by: Defines the pivot mechanism for structure breaks (using Close or High/Low).
• Premium / Discount Zone: Filters for entries within the upper (Premium) or lower (Discount) portions of a swing.

Time Filter

• Start/End Date: Sets the backtesting and active range for the script.
• Session Toggles (New York, London, Tokyo, Sydney): Enables trading only during specific global market hours.

Display

• Show Label / Size: Controls the visibility and scale of on-chart text labels.
• FVG / iFVG Colors: Customizes the visual appearance of demand, supply, and mitigated zones.
• Show Swing / Liquidity / Structure: Toggles the various technical overlays to keep the chart clean or detailed.

FAQ

How do I interpret the iFVG zone? The iFVG represents a zone where price has successfully "broken" a previous Fair Value Gap. It signifies a shift in market sentiment from supply to demand (or vice versa) and acts as the primary entry and stop loss zone in this strategy.

Why was my pending order cancelled? Orders are automatically cancelled to protect capital if the opposite side's liquidity is swept, a new conflicting signal is generated, or the defined trading session ends.

How can I access ICT Entry V2? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.