Forex FVG Indicator

Description

• Shows both bearish and bullish FVG (Fair Value Gaps)
• Option to show only bearish or bullish FVG
• Option to define a minimum size for highlighted FVG
• FVG highlights change after an FVG has been lowered
• Adjust the number of candles needed to check FVG
• Change the length of the FVG highlight lines.
• Alert Delay – type in the number (of candles) from the highlighted FVG to delay the alert
• Alerts to Popup, Push & Email

Fair Value Gaps MT4 Indicator

 

• === FVG Settings ===
• Display FVG Option – It allows you to display:
  • Both Bullish and Bearish FVG
  • FVG Bullish only
  • Bearish FVG only
  • Hide all FVG
• FVG Size Minimum in Points Select the minimum size (in Points) to highlight an FVG (0 = all)
• Bullish FVG Zone ColorSelect a color of your preference
• Bearish FVG Zone ColorChoose the color of your choice
• FVG The area If set to zero (zero) the FVG lines will extend into the current candle. If a different value is used, the FVG lines that are fair value will be extended the number of candles right to the FVG
• Lines Style Select the design of FVG lines (solid dots, dot, etc.)
• Candle Look-back Count Set the number of candles the indicator will count back at to highlight FVG’s
• Show Look-back Line Choose whether or not to show the look-back line of the chart
• Look-back Line ColorChoose the color you prefer
• === Alert Settings ===
• Alert Popup – Alert will trigger the pop-up window and sound alert
• Alert Email – Alert will trigger a text message that will be sent to the email address you have provided
• Alert Push Notification – Alert will trigger a text message to your mobile phone
• Alert Delay (candle count) (candle count)Enter the number (of candles) from the highlighted FVG to delay the alert (IE when set to 3 it will not be activated if price crosses the FVG during the 3 candles immediately following the FVG)

A brief refresher on fair value gaps

• Fair Value Gaps (FVG) are the places where you observe price imbalances in one part of the market.
• Fair Value Gaps are called “price imbalance” or “market inefficiency’
• Price moves only to search for liquidity. The market is constantly looking to match orders (buys and sells) in a balanced manner to ensure market efficiency (and because’smart money’ have so much money to invest, they must place orders at every pip.)

 

Market Efficiency – A fair proportion of sellers and buyers in both markets

If you observe a lot of sellers and buyers there will be a lot of overlap between candles (bodies or wicks) as shown in the picture above. This is called’market efficiency’.

Fair Value Gaps (FVG) occur when price is able to move rapidly from an order block.

• They are a sign that’smart money’ is present in the market

 

What is the term “fair value gap”? Fair Value Gap?

If you have an inefficiency of the market (a green candle without an red candle in opposition or the reverse) as well as the candles that are on either side (including their wicks) don’t close all the gaps:

Eventually, the market makers will eventually want for them to return to the market spaces and fill these gaps.

Note: This doesn’t always happen instantly. On the longer time frames (Daily+) this could take weeks, days or even years! (but in the scalping and intraday timeframes, it’s typically done much faster).

 

Similar rules are applicable to FVG’s they do with order block (they should be held at the 50 percent level). Price should react from open until the 50 percent FVG level:

 

If price fills the whole fair value gap that usually means it was aiming for the order block above/below the FVG:

Indicator Display Options:

 

Option to display only bullish or bearish FVG’s (or both):

 

Mitigated FVG’s will highlight with a thicker line when price touches the FVG:

 

Highlighted FVG’s disappear from the chart when price moves all the way through them:

 

Option to set a minimum size for highlighted FVG’s. Select a minimum size (in Points) to highlight a FVG (0 = all):

 

You can adjust the length of FVG lines. If you set it to zero (zero) the FVG lines will extend into the current candle. If another number is set, the FVG lines will extend the number of candles in the direction to the left of the FVG:

 

Alert Delay Enter the number (of candles) from the highlighted FVG to delay the alert.

If set to 3 the alert won’t be activated if the price is within the gap between fair value and FVG the first 3 candles following the FVG: