Volumetric Entropy IndexVolumetric Entropy Index (VEI)
A volume-based drift analyzer that captures directional pressure, trend agreement, and entropy structure using smoothed volume flows.
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🧠 What It Does:
• Volume Drift EMAs : Shows buy/sell pressure momentum with adaptive smoothing.
• Dynamic Bands : Bollinger-style volatility wrappers react to expanding/contracting drift.
• Baseline Envelope : Clean structural white rails for mean-reversion zones or trend momentum.
• Background Shading : Highlights when both sides (up & down drift) are in agreement — green for bullish, red for bearish.
• Alerts Included : Drift alignment, crossover events, net drift shifts, and strength spikes.
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🔍 What Makes It Different:
• Most volume indicators rely on bars, oscillators, or OBV-style accumulation — this doesn’t.
• It compares directional EMAs of raw volume to isolate real-time bias and acceleration.
• It visualizes the twisting tension between volume forces — not just price reaction.
• Designed to show when volatility is building inside the volume mechanics before price follows.
• Modular — every element is optional, so you can run it lean or fully loaded.
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📊 How to Use It:
• Drift EMAs : Watch for one side consistently dominating — sharp spikes often precede breakouts.
• Bands : When they tighten and start expanding, it often signals directional momentum forming.
• Envelope Lines : Use as high-probability reversal or continuation zones. Bands crossing envelopes = potential thrust.
• Background Color : Green/red backgrounds confirm volume agreement. Can be used as a filter for other signals.
• Net Drift : Optional smoothed oscillator showing the difference between bullish and bearish volume pressure. Crosses above or below zero signal directional bias shifts.
• Drift Strength : Measures pressure buildup — spikes often correlate with large moves.
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⚙️ Full Customization:
• Turn every layer on/off independently
• Modify all colors, transparencies, and line widths
• Adjust band width multiplier and envelope offset (%)
• Toggle bonus plots like drift strength and net baseline
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🧪 Experimental Tools:
• Smoothed Net Drift trace
• Drift Strength signal
• Envelope lines and dynamic entropy bands with adjustable math
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Built for signal refinement. Made to expose directional imbalance before the herd sees it.
Created by @Sherlock_Macgyver
Komut dosyalarını "imbalance" için ara
Dynamic Liquidity Depth [BigBeluga]
Dynamic Liquidity Depth
A liquidity mapping engine that reveals hidden zones of market vulnerability. This tool simulates where potential large concentrations of stop-losses may exist — above recent highs (sell-side) and below recent lows (buy-side) — by analyzing real price behavior and directional volume. The result is a dynamic two-sided volume profile that highlights where price is most likely to gravitate during liquidation events, reversals, or engineered stop hunts.
🔵 KEY FEATURES
Two-Sided Liquidity Profiles:
Plots two separate profiles on the chart — one above price for potential sell-side liquidity , and one below price for potential buy-side liquidity . Each profile reflects the volume distribution across binned zones derived from historical highs and lows.
Real Stop Zone Simulation:
Each profile is offset from the current high or low using an ATR-based buffer. This simulates where traders might cluster their stop-losses above swing highs (short stops) or below swing lows (long stops).
Directional Volume Analysis:
Buy-side volume is accumulated only from bullish candles (close > open), while sell-side volume is accumulated only from bearish candles (close < open). This directional filtering enhances accuracy by capturing genuine pressure zones.
Dynamic Volume Heatmap:
Each liquidity bin is rendered as a horizontal box with a color gradient based on volume intensity:
- Low activity bins are shaded lightly.
- High-volume zones appear more vividly in red (sell) or lime (buy).
- The maximum volume bin in each profile is emphasized with a brighter fill and a volume label.
Extended POC Zones:
The Point of Control (PoC) — the bin with the most volume — is extended backwards across the entire lookback period to mark critical resistance (sell-side) or support (buy-side) levels.
Total Volume Summary Labels:
At the center of each profile, a summary label displays Total Buy Liquidity and Total Sell Liquidity volume.
This metric helps assess directional imbalance — when buy liquidity is dominant, the market may favor upward continuation, and vice versa.
Customizable Profile Granularity:
You can fine-tune both Resolution (Bins) and Offset Distance to adjust how far profiles are displaced from price and how many levels are calculated within the ATR range.
🔵 HOW IT WORKS
The indicator calculates an ATR-based buffer above highs and below lows to define the top and bottom of the liquidity zones.
Using a user-defined lookback period, it scans historical candles and divides the buffered zones into bins.
Each bin checks if bullish (or bearish) candles pass through it based on price wicks and body.
Volume from valid candles is summed into the corresponding bin.
When volume exists in a bin, a horizontal box is drawn with a width scaled by relative volume strength.
The bin with the highest volume is highlighted and optionally extended backward as a zone of importance.
Total buy/sell liquidity is displayed with a summary label at the side of the profile.
🔵 USAGE/b]
Identify Stop Hunt Zones: High-volume clusters near swing highs/lows are likely liquidation zones targeted during fakeouts.
Fade or Follow Reactions: Price hitting a high-volume bin may reverse (fade opportunity) or break with strength (confirmation breakout).
Layer with Other Tools: Combine with market structure, order blocks, or trend filters to validate entries near liquidity.
Adjust Offset for Sensitivity: Use higher offset to simulate wider stop placement; use lower for tighter scalping zones.
🔵 CONCLUSION
Dynamic Liquidity Depth transforms raw price and volume into a spatial map of liquidity. By revealing areas where stop orders are likely hidden, it gives traders insight into price manipulation zones, potential reversal levels, and breakout traps. Whether you're hunting for traps or trading with the flow, this tool equips you to navigate liquidity with precision.
Liquidity Levels (Smart Swing Lows)Liquidity Levels — Smart Swing Low Detection
Efficient Liquidity Sweep Visualization for Smart Money Traders
This script automatically identifies and plots liquidity-rich swing lows based on pivot logic, filters them to remove redundant levels, and overlays daily highs/lows for added context — giving Smart Money Concept (SMC) traders a clean, actionable map of liquidity.
It’s designed to be minimal yet powerful: perfect for spotting potential liquidity grabs, mitigation zones, and sweep targets with zero chart clutter.
🔍 What This Script Does:
Detects Smart Swing Lows
Uses fixed pivot detection (left = 3, right = customizable) to identify structurally significant swing lows.
Filters out swing lows that are too close together using a percentage-based spacing threshold to reduce noise.
Mitigation Cleanup Logic
Tracks whether recent price action breaches past swing lows.
If breached, the swing level is automatically removed, keeping only relevant, unmitigated liquidity levels on your chart.
Plots Daily Highs and Lows
Each new trading day, horizontal rays mark the prior day’s high and low — useful for identifying resting liquidity and possible sweep zones.
Labeling and Style Customization
Optional labels for swing lows.
Full control over label size, color, and visibility to match any chart aesthetic.
Timeframe Filtering
Runs exclusively on 5m, 10m, and 15m charts to ensure optimal reliability and signal clarity.
⚙️ Customization Features:
Pivot sensitivity (Right side control)
Minimum distance between swing lows (in %)
Label visibility, size, and color
Line width and colors for both swing levels and daily highs/lows
Mitigation cleanup lookback length
💡 How to Use:
Add the script to a qualifying intraday chart (5–15m).
Use the swing low levels to monitor liquidity-rich zones.
Combine with your personal strategy to identify liquidity grabs, potential reversal zones, or entry points following a sweep.
Let the built-in cleanup logic remove any already-mitigated levels so you can focus on active targets.
🚀 What Makes It Unique:
This isn’t just another pivot plotter — it’s a smart, self-cleaning SMC tool designed for modern liquidity-based trading strategies.
A must-have for traders using concepts like liquidity grabs, mitigation blocks, or sweep-to-reverse trade models.
🔗 Best used in combination with:
✅ First FVG — Opening Range Fair Value Gap Detector: Pinpoint the day’s first imbalance zone for intraday setups.
✅ ICT SMC Liquidity Grabs + OB + Fibonacci OTE Levels: Confluence-based entries powered by liquidity logic, order blocks, and premium/discount zones.
Used together, these scripts form a complete Smart Money toolkit — helping you build high-probability setups with confidence, clarity, and clean charts.
RVOL Effort Matrix💪🏻 RVOL Effort Matrix is a tiered volume framework that translates crowd participation into structure-aware visual zones. Rather than simply flagging spikes, it measures each bar’s volume as a ratio of its historical average and assigns to that effort dynamic tiers, creating a real-time map of conviction , exhaustion , and imbalance —before price even confirms.
⚖️ At its core, the tool builds a histogram of relative volume (RVOL). When enabled, a second layer overlays directional effort by estimating buy vs sell volume using candle body logic. If the candle closes higher, green (buy) volume dominates. If it closes lower, red (sell) volume leads. These components are stacked proportionally and inset beneath a colored cap line—a small but powerful layer that maintains visibility of the true effort tier even when split bars are active. The cap matches the original zone color, preserving context at all times.
Coloration communicates rhythm, tempo, and potential turning points:
• 🔴 = structurally weak effort, i.e. failed moves, fake-outs or trend exhaustion
• 🟡 = neutral volume, as seen in consolidations or pullbacks
• 🟢 = genuine commitment, good for continuation, breakout filters, or early rotation signals
• 🟣 = explosive volume signaling either climax or institutional entry—beware!
Background shading (optional) mirrors these zones across the pane for structural scanning at a glance. Volume bars can be toggled between full-stack mode or clean column view. Every layer is modular—built for composability with tools like ZVOL or OBVX Conviction Bias.
🧐 Ideal Use-Cases:
• 🕰 HTF bias anchoring → LTF execution
• 🧭 Identifying when structure is being driven by real crowd pressure
• 🚫 Fading green/fuchsia bars that fail to break structure
• ✅ Riding green/fuchsia follow-through in directional moves
🍷 Recommended Pairings:
• ZVOL for statistically significant volume anomaly detection
• OBVX Conviction Bias ↔️ for directional confirmation of effort zones
• SUPeR TReND 2.718 for structure-congruent entry filtering
• ATR Turbulence Ribbon to distinguish expansion pressure from churn
🥁 RVOL Effort Matrix is all about seeing—how much pressure is behind a move, whether that pressure is sustainable, and whether the crowd is aligned with price. It's volume, but readable. It’s structure, but dynamic. It’s the difference between obeying noise and trading to the beat of the market.
Supply & Demand Zones
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Supply and Demand Zones
This indicator displays valid Supply and Demand zones on any chart and timeframe, using dynamically updating visuals. Users can see the moment that zones become validated, used, and then invalidated during live sessions. It is sleek, lightweight, and offers a feature-rich settings panel that allows customization of how each element appears and functions. Zones can enhance the probability of successful trades by locating areas that are most likely to contain resting orders of Supply or Demand, which are needed for price reversals.
Disclaimer
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Like all indicators, this can be a valuable tool when incorporated into a comprehensive, risk-based trading system.
Supply and Demand is not the same thing as Support and Resistance.
Trading based on price hitting a zone without understanding which zones are of higher quality and which are of lower quality (only discernible with a trained human eye) will yield poor results.
Supply and Demand works well as a system and even better when added to an existing one. However, like all effective trading techniques, it requires diligent study, practice, and repetition to become proficient. This is an indicator for use with Supply and Demand concepts, not a replacement for learning them.
Features
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Once a valid candle sequence is confirmed, a box will appear that displays the zone over the precise zone range. At 50% zone penetration, a zone becomes used , and at 100% it becomes invalidated . Each of these zone classifications changes the behavior of the zone on the chart immediately. The settings panel offers custom colors for Supply , Demand , Used , and Invalidated zone types.
Borders : The subtle border colors can be changed or hidden.
Boxes or Bases : Advanced users can opt to hide zone boxes and instead display small, subtle tags over base candle groups. This allows for more customizable selection over what is displayed and how.
Max Zones and Hide Invalidated :
There are limitations on how many objects TradingView allows at once. Because of this, once zones go from used to invalidated , they are hidden (deleted) by default. This allows the zones index to be allocated to display more valid , usable zones instead. If a user prefers to keep invalidated zones visible, they can be enabled; however, this will result in showing more recent zones for fewer historical zones.
All zones share one pool, so if you allow fifty max zones, forty-five might be supply while five might be demand on a big sell-off trend. You will always see the most recent zones, regardless of type or status.
It’s up to you how much clutter you want on your screen and how much improved load time you want - but once loaded, zone creation and function are always instantaneous.
Load Time
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Load time refers to the time it takes from when you switch tickers or timeframes before the zones are displayed initially. There is zero lag in the dynamic function and minimal load time, regardless of settings. However, if you are a fine-tuner or multi-screener, the number of Max Zones displayed is the only major variable affecting load time.
I run everything at Max when I develop. When I trade, I run mine at 25 max zones because I change timeframes often and want a very quick display of zones when I do. I have invalidated hidden, and simply enable it if I want to check an old zone. This gives me more zones than I need and reduces the load time to right where I like it.
Thresholds
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It is recommended to leave these as the default.
Base Body Threshold : Determines the maximum ratio of a candle’s body to wick before invalidation. Default (50% or 0.5). A higher number loosens thresholds, resulting in more zones being displayed.
Unrequire 2nd FT if LO is Strong & Strength Multiplier :
The standard logic sequence requires two Follow-Through candles. Under some strong price movement, Leg-Out candles can make an explosive directional move from a base, making a convincing argument for supply and demand perfectly at work, if not for a single Follow-Through candle instead of two.
By enabling this feature, you can tell the script to ignore second Follow-Through candles, if and only if, the Leg-Out candle's range is (Strength) X the base range. exceeds the range of the Base by a factor of X (Strength). ie: At 5x, this would require a Leg-Out range to be 500% the range of the Base.
If enabled and the Leg-Out is not strong enough, the default logic kicks in, and a second follow-through candle will validate the zone as per usual. This loosens thresholds overall and should result in more zones.
Recommended Usage
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Form a thesis using your primary trend trading system (eg: Elliott Wave, Structure Reversal, TheStrat, et al) to identify locations of a pullback for a long or short entry.
Identify a pullback area using your system, then use this indicator to find a high-quality zone on your chosen timeframe.
Once located, draw your own channel over the indicator's zone box. Start on 1m, check for zones, 2m, 3m, and so on. When you see a zone you like, recreate it; thus, when finished, you can see every timeframe’s highest-quality zones that you created, regardless of what timeframe you switch to. Tip: Be selective
To make the process faster, save a channel design in settings for “Demand” and one for “Supply”, then you can quickly get through this process in less than a minute with practice.
Optional: Use additional methods (eg: Fibonacci retracements, Elliott Wave Theory, Anchored VWAPs) to find congruent confirmation.
Version 1.0
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No known bugs remain from the closed beta.
In Development
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Powerful combination zones occur when standard zone sequences are extended with additional levels of demand or supply by adding more conditionals to the state machine logic. Got this mostly working in a dev version and it adds minimal extra resources. Set aside to polish a clean standard 1.0 for release first, but now displaying these extended zones is my top priority for next version.
MTF support is essentially working in a dev copy, but adds resources. Not sure if it is in the spirit of price action being the primary focus of a chart for serious traders, rather than indicators. If there is demand for it, I'll consider it.
Additional Threshold Settings
Thanks!
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Thank you for your interest in my work. This was a personal passion project of mine, and I was delighted it turned out better than I hoped, so I decided to share it. If you have any comments, bugs, or suggestions, please leave them here, or you can find me on Twitter or Discord.
@ ContrarianIRL
Open-source developer for over 25 years
CVD Divergence Insights📘 CVD Divergence Insights – by Colicoid
Pine Script v6 | Volume Delta Divergence Oscillator with Spike Detection
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🔍 Overview
CVD Divergence Insights is a volume-aware oscillator and divergence spike detector that helps you spot smart money activity, absorption, failed pressure, and hidden strength or weakness — even when price action alone gives little away.
It works by comparing normalized Cumulative Volume Delta (CVD) against normalized price movement, and optionally applying a volume-weighting layer to highlight when aggressive participation is truly behind the divergence. The result is a dynamic visual tool that identifies tension in the market, and helps you trade based on how that tension resolves.
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🧠 Core Concept
• When price moves one way and CVD moves another, it reflects imbalance between aggression and result.
• Divergence is not a trigger — it’s a build-up of pressure.
• The real edge lies in the resolution of that pressure.
• Optional volume-weighting helps you ignore noise and focus on high-conviction moves only.
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⚙️ How It Works
1. CVD Calculation
CVD is generated using lower-timeframe delta volume (buy vs. sell pressure), accumulated per bar.
2. Oscillator
A normalized divergence between the smoothed CVD and smoothed price.
3. Volume Weighting (optional)
Emphasizes divergences occurring on higher-than-normal volume, deprioritizes low-volume noise.
4. Signal Line (optional)
A short EMA of the oscillator to help track momentum shifts (hidden by default).
5. Divergence Spikes
Statistical spike detection using standard deviation — green/red dots highlight unusually large divergence activity.
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🎛️ Inputs
Anchor Period
Higher timeframe where the CVD is accumulated and processed.
Lower Timeframe
Optional override for granularity of buy/sell volume data.
SMA Length
Used for smoothing both price and CVD before divergence is calculated.
Volume Weighted?
Enables adaptive weighting based on relative volume size.
Volume Normalization Length
Lookback period used to define what is “normal” volume.
Divergence Spike Threshold
StdDev-based threshold to detect abnormally large divergences.
Signal Line Length
Controls the EMA smoothing of the optional signal line (hidden by default).
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📈 Trade Setup Example: Hidden Bullish Divergence
1. Price forms a higher low, but CVD forms a lower low — hidden bullish divergence.
2. This shows aggressive sellers are trying, but price is resilient — likely absorption.
3. You wait for a "convergent signal bar":
• A bullish candle with strong structure or body
• Confirmed by CVD starting to turn upward
4. That’s your trigger bar — the tension resolves upward.
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🤝 Recommended Pairings
For best results, combine CVD Divergence Insights with the companion script:
🔗 Cumulative Volume Delta Line (also by Colicoid)
This lets you:
• See the raw CVD line and its SMA visually
• Spot standard and hidden divergences in price/CVD directly
• Use the Insights indicator to evaluate divergence quality and flag aggressive bull/bear behavior
• Use the same SMA length on both indicators for alignment
👉 Tip: To save screen space, drag the CVD Line indicator into the same panel as CVD Divergence Insights.
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🧰 Why Use This?
• ✅ Catch absorption setups and failed pressure zones
• ✅ Filter out low-quality divergences using volume context
• ✅ Understand why price is hesitating or breaking out
• ✅ Add smart confirmation to breakout/reversal trades
• ✅ Align your execution with who’s actually in control
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📎 Created by Colicoid
Built in Pine Script v6 for advanced price-volume analysis, with focus on effort vs result, market psychology, and smart money detection.
Wyckoff Range Detector [Beta] + Smart Money ElementsThis indicator detects the key phases of the Wyckoff market structure and integrates smart money elements, such as Order Blocks (OB), Fair Value Gaps (FVG), and Breaker Blocks. It also helps identify potential reversal zones (LPS, UTAD, Spring), breakout opportunities, and provides automatic Risk-Reward (R:R) calculations.
Key Features:
Wyckoff Phases Detection:
Automatically detects key phases of Wyckoff's market structure:
B (Range) – The initial range of accumulation.
C (Spring Phase) – Accumulation phase with a potential breakout.
C (UTAD Phase) – Upthrust After Distribution, indicating a potential reversal.
D (LPS Phase) – Last Point of Support, signaling accumulation before a breakout.
E (Breakout) – Phase marking breakout from range.
Re-Accumulation – Possible continuation in the range after a breakout.
Re-Distribution – Possible breakdown of a distribution phase.
Smart Money Elements:
Order Blocks (OB): Identifies Bullish and Bearish OBs to anticipate market entries.
Fair Value Gap (FVG): Highlights imbalance areas where price is likely to return.
Breaker Blocks: Marks areas where the price has previously broken a structure, indicating strong supply/demand zones.
Automatic Risk-Reward Calculation:
Smart RR: Automatically calculates Risk-Reward (R:R) ratios from LPS phases and Order Blocks. It draws lines to indicate target and stop levels with green for the target and red for the stop.
Visual representation of the entry signal with target and stop levels displayed.
Alerts:
Set alerts for phase changes, breakout, re-accumulation, or re-distribution to stay updated on the market’s movements.
Visual Tools:
Labels are used to indicate key zones such as AR, SC, LPS, and Spring Zones.
Draw boxes for the Spring and LPS phases to highlight areas where price action is likely to reverse.
Lines to represent potential breakouts, with customizable risk-reward indicators.
How to Use:
Apply the Indicator on any chart.
Identify Wyckoff phases to understand market trends.
Monitor Smart Money Elements (OB, FVG, Breaker) for entry and exit points.
Use automatic Risk-Reward levels for managing trades.
Set alerts for various Wyckoff phases and smart money signals to stay updated.
Fair Value Gap (FVG) Detector Fair Value Gap (FVG) is an imbalance in price action that occurs when there is a strong displacement (big movement) in the market, leaving a gap between wicks. This gap represents an area where price moved too quickly, and liquidity was not fully filled.
Traders use FVGs as potential areas where price might retrace and react before continuing in the original direction.
Higher Time Frame Fair Value Gap [ZeroHeroTrading]A fair value gap (FVG) highlights an imbalance area between market participants, and has become popular for technical analysis among price action traders.
A bullish (respectively bearish) fair value gap appears in a triple-candle pattern when there is a large candle whose previous candle’s high (respectively low) and subsequent candle’s low (respectively high) do not fully overlap the large candle. The space between these wicks is known as the fair value gap.
The following script aims at identifying higher timeframe FVG's within a lower timeframe chart. As such, it offers a unique perspective on the formation of FVG's by combining the multiple timeframe data points in the same context.
You can change the indicator settings as you see fit to achieve the best results for your use case.
Features
It draws higher timeframe bullish and bearish FVG's on the chart.
For bullish (respectively bearish) higher timeframe FVG's, it adds the buying (respectively selling) pressure as a percentage ratio of the up (respectively down) volume of the second higher timeframe bar out of the total up (respectively down) volume of the first two higher timeframe bars.
It adds a right extended trendline from the most recent lowest low (respectively highest high) to the top (respectively bottom) of the higher timeframe bullish (respectively bearish) FVG.
It detects and displays higher timeframe FVG's as early as one starts forming.
It detects and displays lower timeframe (i.e. chart's timeframe) FVG's upon confirmation.
It allows for skipping inside first bars when evaluating FVG's.
It allows for dismissing higher timeframe FVG's if there is no update for any period of the chart's timeframe. For instance, this can occur at lower timeframes during low trading activity periods such as extended hours.
Settings
Higher Time Frame FVG dropdown: Selects the higher timeframe to run the FVG detection on. Default is 15 minutes. It must be higher than, and a multiple of, the chart's timeframe.
Higher Time Frame FVG color select: Selects the color of the text to display for higher timeframe FVG's. Default is black.
Show Trend Line checkbox: Turns on/off trendline display. Default is on.
Show Lower Time Frame FVG checkbox: Turns on/off lower timeframe (i.e. chart's timeframe) FVG detection. Default is on.
Show Lower Time Frame FVG color select: Selects the color of the border for lower timeframe (i.e. chart's timeframe) FVG's. Default is white.
Include Inside Bars checkbox: Turns on/off the inclusion of inside first bars when evaluating FVG's. Default is on.
With Consistent Updates checkbox: Turns on/off consistent updates requirement. Default is on.
Effective FVG Indicator - ImranDescription:
The Effective FVG Indicator is a technical analysis tool designed to identify Fair Value Gaps (FVGs) in financial markets. FVGs occur when there is a significant gap between the closing price of one session and the opening price of the next session, often indicating a potential reversal point. This indicator uses volume and price movement criteria to confirm and mark these gaps effectively.
Key Features:
Fair Value Gap Detection : Identifies both bullish and bearish FVGs based on significant gaps in price.
Volume Confirmation : Confirms FVGs with high volume, ensuring that the gap is not due to a lack of liquidity.
Price Imbalance : Ensures that the gap is accompanied by a large price movement within the session, indicating strong market sentiment.
Buy/Sell Signals : Marks bullish FVGs with a green "BUY" label below the bar and bearish FVGs with a red "SELL" label above the bar.
Background Highlighting : Highlights the background with a semi-transparent green or red color when a valid FVG is detected, making it easy to spot significant gaps.
ICT NY Kill Zone Auto Trading### **ICT NY Kill Zone Auto Trading Strategy (5-Min Chart)**
#### **Overview:**
This strategy is based on Inner Circle Trader (ICT) concepts, focusing on the **New York Kill Zone**. It is designed for trading GBP/USD exclusively on the **5-minute chart**, automatically entering and exiting trades during the US session.
#### **Key Components:**
1. **Time Filter**
- The strategy only operates during the **New York Kill Zone (9:30 AM - 11:00 AM NY Time)**.
- It ensures execution only on the **5-minute timeframe**.
2. **Fair Value Gaps (FVGs) Detection**
- The script identifies areas where price action left an imbalance, known as Fair Value Gaps (FVGs).
- These gaps indicate potential liquidity zones where price may return before continuing in the original direction.
3. **Order Blocks (OBs) Identification**
- **Bullish Order Block:** Occurs when price forms a strong bullish pattern, suggesting further upside movement.
- **Bearish Order Block:** Identified when a strong bearish formation signals potential downside continuation.
4. **Trade Execution**
- **Long Trade:** Entered when a bullish order block forms within the NY Kill Zone and aligns with an FVG.
- **Short Trade:** Entered when a bearish order block forms within the Kill Zone and aligns with an FVG.
5. **Risk Management**
- **Stop Loss:** Fixed at **30 pips** to limit downside risk.
- **Take Profit:** Set at **60 pips**, providing a **2:1 risk-reward ratio**.
6. **Visual Aids**
- The **Kill Zone is highlighted in blue** to help traders visually confirm the active session.
**Objective:**
This script aims to **capitalize on institutional price movements** within the New York session by leveraging ICT concepts such as FVGs and Order Blocks. By automating trade entries and exits, it eliminates emotions and ensures a disciplined trading approach.
ICT Concepts: MML, Order Blocks, FVG, OTECore ICT Trading Concepts
These strategies are designed to identify high-probability trading opportunities by analyzing institutional order flow and market psychology.
1. Market Maker Liquidity (MML) / Liquidity Pools
Idea: Institutional traders ("market makers") place orders around key price levels where retail traders’ stop losses cluster (e.g., above swing highs or below swing lows).
Application: Look for "liquidity grabs" where price briefly spikes to these levels before reversing.
Example: If price breaks a recent high but reverses sharply, it may indicate a liquidity grab to trigger retail stops before a trend reversal.
2. Order Blocks (OB)
Idea: Institutional orders are often concentrated in specific price zones ("order blocks") where large buy/sell decisions occurred.
Application: Identify bullish order blocks (strong buying zones) or bearish order blocks (strong selling zones) on higher timeframes (e.g., 1H/4H charts).
Example: A bullish order block forms after a strong rally; price often retests this zone later as support.
3. Fair Value Gap (FVG)
Idea: A price imbalance occurs when candles gap without overlapping, creating an area of "unfair" price that the market often revisits.
Application: Trade the retracement to fill the FVG. A bullish FVG acts as support, and a bearish FVG acts as resistance.
Example: Three consecutive candles create a gap; price later returns to fill this gap, offering a entry point.
4. Time-Based Analysis (NY Session, London Kill Zones)
Idea: Institutional activity peaks during specific times (e.g., 7 AM – 11 AM New York time).
Application: Focus on trades during high-liquidity periods when banks and hedge funds are active.
Example: The "London Kill Zone" (2 AM – 5 AM EST) often sees volatility due to European market openings.
5. Optimal Trade Entry (OTE)
Idea: A retracement level (similar to Fibonacci retracement) where institutions re-enter trends after a pullback.
Application: Look for 62–79% retracements in a trend to align with institutional accumulation/distribution zones.
Example: In an uptrend, price retraces 70% before resuming upward—enter long here.
6. Stop Hunts
Idea: Institutions manipulate price to trigger retail stop losses before reversing direction.
Application: Avoid placing stops at obvious levels (e.g., above/below recent swings). Instead, use wider stops or wait for confirmation.
Fair Value Gap (FVG) by AlgoMaxxFair Value Gap (FVG) by AlgoMaxx
Advanced Fair Value Gap (FVG) detector with dynamic support/resistance lines. This professional-grade tool helps traders identify and track important market inefficiencies through Fair Value Gaps.
Features:
• Auto-detection of bullish and bearish FVGs
• Dynamic dotted extension lines for latest FVGs
• Smart gap filtering system
• Color-coded visualization
• Customizable parameters
• Clean, optimized code
Key Functions:
• Detects imbalance zones between candlesticks
• Marks FVGs with color-coded boxes
• Extends dotted lines for active reference levels
• Automatically updates with new gap formations
• Tracks gap fills in real-time
Inputs:
• Lookback Period: Historical gaps to display
• Minimum Gap Size %: Filter for gap significance
• Bullish/Bearish Colors: Visual customization
• Show Filled Gaps: Toggle filled gap visibility
Practical Applications:
1. Support/Resistance Levels
2. Mean Reversion Trading
3. Trend Continuation Setups
4. Market Structure Analysis
5. Price Action Trading
Usage Tips:
• Higher timeframes (1H+) provide more reliable signals
• Multiple FVGs in one zone indicate stronger levels
• Use in conjunction with other technical tools
• Monitor price reactions at FVG levels
• Consider gaps as zones rather than exact prices
Note: This is a premium-grade indicator designed for serious traders. Works best on higher timeframes where price inefficiencies are more significant.
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By Algomaxx
Version: 1.0
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Disclaimer:
This indicator is for informational purposes only. Trade at your own risk and always use proper risk management.
#FVG #technical #trading #algomaxx #premium
Reversal rehersal v1This indicator was designed to identify potential market reversal zones using a combination of RSI thresholds (shooting range/falling range), candlestick patterns, and Fair Value Gaps (FVGs). By combining all these elements into one indicator, it allow for outputting high probability buy/sell signals for use by scalpers on low timeframes like 1-15 mins, for quick but small profits.
Note: that this has been mainly tested on DE40 index on the 1 min timeframe, and need to be adjusted to whichever timeframe and symbol you intend to use. Refer to the backtester feature for checking if this indicator may work for you.
The indicator use RSI ranges from two timeframes to highlight where momentum is building up. During these areas, it will look for certain candlestick patterns (Sweeps as the primary one) and check for existance of fair value gaps to further enhance the hitrate of the signal.
The logic for FVG detection was based on ©pmk07's work with MTF FVG tiny indicator. Several major changes was implemented though and incorporated into this indicator. Among these are:
Automatically adjustments of FVG boxes when mitigated partially and options to extend/cull boxes for performance and clarity.
Backtesting Table (Experimental):
This indicator also features an optional simplified table to review historical theoretical performance of signals, including win rate, profit/loss, and trade statistics. This does not take commision or slippage into consideration.
Usage Notes:
Setup:
1. Add the indicator to your chart.
2. Decide if you want to use Long or Short (or both).
3. If you're scalping on ie. 1 min time frame, make sure to set FVG's to higher timeframes (ie. 5, 15, 60).
4. Enable the 'Show backtest results' and adjust the 'Signals' og 'Take profit' and 'Stop loss' values until you are satisfied with the results.
Use:
1. Setup an alert based on either of the 'BullishShooting range' or 'BearishFalling range' alerts. This will draw your attention to watch for the possible setups.
2. Verify if there's a significant imbalance prior to the signal before taking the trade. Otherwise this may invalidate the setup.
3. Once a signal is shown on the graph (either Green arrow up for buys/Red arrow down for sells) - you should enter a trade with the given 'Take profit' and 'Stop loss' values.
4. (optional) Setup an alert for either the Strong/Weak signals. Which corresponds to when one of the arrows are printed.
Important: This is the way I use it myself, but use at own risk and remember to combine with other indicators for further confluence. Remember this is no crystal ball and I do not guarantee profitable results. The indicator merely show signals with high probability setups for scalping.
FVG Detector (Gholam version)The Fair Value Gap (FVG) Detector is a powerful tool designed to identify and highlight potential imbalance areas in the market. Fair Value Gaps, also known as "FVG" or "Liquidity Gaps," are price ranges where there has been little or no trading activity. These gaps can often act as key levels of support or resistance and may represent areas where price is likely to return to for a fill, providing potential trading opportunities.
This indicator automatically scans and marks these gaps on the chart, helping traders quickly spot areas of interest for potential reversals or continuation patterns.
Mean Price
^^ Plotting switched to Line.
This method of financial time series (aka bars) downsampling is literally, naturally, and thankfully the best you can do in terms of maximizing info gain. You can finally chill and feed it to your studies & eyes, and probably use nothing else anymore.
(HL2 and occ3 also have use cases, but other aggregation methods? Not really, even if they do, the use cases are ‘very’ specific). Tho in order to understand why, you gotta read the following wall, or just believe me telling you, ‘I put it on my momma’.
The true story about trading volumes and why this is all a big misdirection
Actually, you don’t need to be a quant to get there. All you gotta do is stop blindly following other people’s contextual (at best) solutions, eg OC2 aggregation xD, and start using your own brain to figure things out.
Every individual trade (basically an imprint on 1D price space that emerges when market orders hit the order book) has several features like: price, time, volume, AND direction (Up if a market buy order hits the asks, Down if a market sell order hits the bids). Now, the last two features—volume and direction—can be effectively combined into one (by multiplying volume by 1 or -1), and this is probably how every order matching engine should output data. If we’re not considering size/direction, we’re leaving data behind. Moreover, trades aren’t just one-price dots all the time. One trade can consume liquidity on several levels of the order book, so a single trade can be several ticks big on the price axis.
You may think now that there are no zero-volume ticks. Well, yes and no. It depends on how you design an exchange and whether you allow intra-spread trades/mid-spread trades (now try to Google it). Intra-spread trades could happen if implemented when a matching engine receives both buy and sell orders at the same microsecond period. This way, you can match the orders with each other at a better price for both parties without even hitting the book and consuming liquidity. Also, if orders have different sizes, the remaining part of the bigger order can be sent to the order book. Basically, this type of trade can be treated as an OTC trade, having zero volume because we never actually hit the book—there’s no imprint. Another reason why it makes sense is when we think about volume as an impact or imbalance act, and how the medium (order book in our case) responds to it, providing information. OTC and mid-spread trades are not aggressive sells or buys; they’re neutral ticks, so to say. However huge they are, sometimes many blocks on NYSE, they don’t move the price because there’s no impact on the medium (again, which is the order book)—they’re not providing information.
... Now, we need to aggregate these trades into, let’s say, 1-hour bars (remember that a trade can have either positive or negative volume). We either don’t want to do it, or we don’t have this kind of information. What we can do is take already aggregated OHLC bars and extract all the info from them. Given the market is fractal, bars & trades gotta have the same set of features:
- Highest & lowest ticks (high & low) <- by price;
- First & last ticks (open & close) <- by time;
- Biggest and smallest ticks <- by volume.*
*e.g., in the array ,
2323: biggest trade,
-1212: smallest trade.
Now, in our world, somehow nobody started to care about the biggest and smallest trades and their inclusion in OHLC data, while this is actually natural. It’s the same way as it’s done with high & low and open & close: we choose the minimum and maximum value of a given feature/axis within the aggregation period.
So, we don’t have these 2 values: biggest and smallest ticks. The best we can do is infer them, and given the fact the biggest and smallest ticks can be located with the same probability everywhere, all we can do is predict them in the middle of the bar, both in time and price axes. That’s why you can see two HL2’s in each of the 3 formulas in the code.
So, summed up absolute volumes that you see in almost every trading platform are actually just a derivative metric, something that I call Type 2 time series in my own (proprietary ‘for now’) methods. It doesn’t have much to do with market orders hitting the non-uniform medium (aka order book); it’s more like a statistic. Still wanna use VWAP? Ok, but you gotta understand you’re weighting Type 1 (natural) time series by Type 2 (synthetic) ones.
How to combine all the data in the right way (khmm khhm ‘order’)
Now, since we have 6 values for each bar, let’s see what information we have about them, what we don’t have, and what we can do about it:
- Open and close: we got both when and where (time (order) and price);
- High and low: we got where, but we don’t know when;
- Biggest & smallest trades: we know shit, we infer it the way it was described before.'
By using the location of the close & open prices relative to the high & low prices, we can make educated guesses about whether high or low was made first in a given bar. It’s not perfect, but it’s ultimately all we can do—this is the very last bit of info we can extract from the data we have.
There are 2 methods for inferring volume delta (which I call simply volume) that are presented everywhere, even here on TradingView. Funny thing is, this is actually 2 parts of the 1 method. I wonder how many folks see through it xD. The same method can be used for both inferring volume delta AND making educated guesses whether high or low was made first.
Imagine and/or find the cases on your charts to understand faster:
* Close > open means we have an up bar and probably the volume is positive, and probably high was made later than low.
* Close < open means we have a down bar and probably the volume is negative, and probably low was made later than high.
Now that’s the point when you see that these 2 mentioned methods are actually parts of the 1 method:
If close = open, we still have another clue: distance from open/close pair to high (HC), and distance from open/close pair to low (LC):
* HC < LC, probably high was made later.
* HC > LC, probably low was made later.
And only if close = open and HC = LC, only in this case we have no clue whether high or low was made earlier within a bar. We simply don’t have any more information to even guess. This bar is called a neutral bar.
At this point, we have both time (order) and price info for each of our 6 values. Now, we have to solve another weighted average problem, and that’s it. We’ll weight prices according to the order we’ve guessed. In the neutral bar case, open has a weight of 1, close has a weight of 3, and both high and low have weights of 2 since we can’t infer which one was made first. In all cases, biggest and smallest ticks are modeled with HL2 and weighted like they’re located in the middle of the bar in a time sense.
P.S.: I’ve also included a "robust" method where all the bars are treated like neutral ones. I’ve used it before; obviously, it has lesser info gain -> works a bit worse.
Order blocksHi all!
This indicator will show you found order blocks that can be used as supply or demand. It's my take on trying to create good order blocks and I hope it makes sense.
First off I suggest to verify the current trend before using an order block. This can be done in a variety of ways, one way could be to use my other script "Market structure" () which I use and suggest.
You can configure the indicator to behave differently depending on settings. These are the settings available:
• The order blocks created can be found in any higher timeframe defined in "Timeframe"
• The number of active order blocks are defined in "Count". If an order block is found the earliest order block will be replaced
• You can choose the type of order blocks that are found ("Bullish", "Bearish " or "Both") in "Type"
• The old order blocks can be kept if "Keep history" is checked
• Order blocks that are found are not removed when mitigated (entered) but when a new one appears. They can be removed when they are broken by price if "Remove broken zones" are checked
There is also a setting section called "Requirements" that defines what is required for an order block to be created. These are the settings:
• "Take out"
Check this if you want the base of the order block (the candle where the zone is drawn from (high and low)) to have to take out the previous candle (be higher or lower depending if the order block is bullish or bearish).
• "Consecutive rising/falling"
Each following candle in the reaction (the 3 reaction candles) needs to reach higher or lower (depending on bullish or bearish). Check this if you want that to be true.
• "Reaction"
Some sort of reaction is needed from the 3 candles creating the order block. This reaction is based on the value of the Average True Length (ATR) of length 14. You can here define a factor of the value from the ATR that these 3 candles needs to move in price. A higher need for a reaction (higher factor of the ATR) will create lesser zones. You can also choose to show this limit with the checkbox.
• "Fair Value Gap"
The reaction needs to create a gap (imbalance) in price. This gap is known as a "Fair Value Gap" and is created when the last candle's wick does not meet with the base candle's wick. Check this if you want this to be needed.
After these settings you can also choose the colors of the created zones. The ones that are active (called "Zones"), the ones that are replaced ("Replaced zones") and the ones that are broken ("Broken zones") (if this is enabled in "Remove broken zones").
I'm using my library "Touched" to be able to show you labels when the order blocks have a retest, false breakout and breakout. These labels can be hidden if you disable the labels under the style tab in the indicator settings.
The concept of order blocks is widely used among traders and can provide you with good supply or demand zones. I hope that this indicator makes sense.
My todo-list has a few things, but top of that list is adding alerts for zone interactions or creations. Please feel free to say what you want to be coded!
The order blocks in the publication chart are found in weekly timeframe but are shown on the daily timeframe. Other than that the image shows you zones from the default settings (which are based on the daily timeframe).
Best of luck trading!
Implied Fair Value Gap (IFVG) ICT [TradingFinder] Hidden FVG OTE🔵 Introduction
The Implied Fair Value Gap (IFVG) is distinctive due to its unique three-candlestick formation, which differentiates it from conventional Fair Value Gaps.
Implied fair value represents an estimated worth of an asset—often a business or its goodwill—based on the price likely to be received in a structured transaction between market participants at a specific point in time.
In the ever-evolving world of technical analysis, pinpointing price reversal points and market anomalies can significantly enhance trading strategies and decision-making for traders and investors. Among the advanced concepts gaining traction in this field is the Implied Fair Value Gap (IFVG), introduced by the renowned analyst Inner Circle Trader (ICT).
This tool has proven to be an effective method for identifying hidden supply and demand zones in financial markets, offering a unique edge to traders looking for high-probability setups.
Unlike traditional gaps that are visible on price charts, IFVG is a hidden gap that doesn’t appear explicitly on the chart and thus requires specialized technical analysis tools for accurate identification.
This hidden gap can signal potential price reversals and offers traders insight into high-liquidity areas where price is likely to react. This article will guide you through using the ICT Implied Fair Value Gap Indicator effectively, covering its settings, usage strategies, and key features to help you make informed decisions in the market.
🟣 Bullish Implied FVG
🟣 Bearish Implied FVG
🔵 How to Use
The IFVG indicator is designed to assist traders in recognizing hidden support and resistance zones by identifying Bullish and Bearish IFVG patterns. With this tool, traders can make better-informed decisions about suitable entry and exit points for their trades based on these patterns.
🟣 Bullish Implied Fair Value Gap
This pattern occurs in an uptrend when a large bullish candlestick forms, with the wicks of the previous and following candles overlapping the body of the central candlestick.
This overlap creates a demand zone or a hidden support level, which can act as an ideal entry point for buy trades. Often, when the price returns to this area, it is likely to resume its upward trend, presenting a profitable buying opportunity.
🟣 Bearish Implied Fair Value Gap
This pattern is similar but forms in downtrends. Here, a large bearish candlestick appears on the chart, with the wicks of adjacent candles overlapping its body. This overlap defines a supply zone or a hidden resistance level and serves as a signal for potential sell trades.
When the price returns to this zone, it often continues its downward trend, providing an optimal point for entering sell trades.
The IFVG indicator also includes various filters that traders can use to refine their analysis based on market conditions. These filters, including Very Aggressive, Aggressive, Defensive, and Very Defensive, allow users to customize the IFVG zones' width, offering flexibility according to the trader’s risk tolerance and trading style.
🟣 Example Trading Scenarios
Suppose you’re in a strong uptrend and the IFVG indicator identifies a Bullish IFVG zone. In this scenario, you could consider entering a buy trade when the price retraces to this zone, expecting the uptrend to resume. Conversely, in a downtrend, a Bearish IFVG zone can signal a favorable entry point for short trades when the price revisits this area.
🔵 Settings
Implied Block Validity Period: This parameter specifies the validity period of each identified block, taking into account the number of bars that have passed since its formation. Proper adjustment of this period helps traders focus only on relevant zones, increasing the accuracy of the analysis.
Mitigation Level OB : This option defines the mitigation level for supply and demand blocks (Order Blocks), with settings including Proximal, 50% OB, and Distal.
Depending on the selected level, the indicator will focus on closer, mid-range, or farther points for block identification, allowing traders to adjust for the level of precision required.
Implied Filter : Activating this filter allows traders to apply conditions based on the width of the IFVG zones. With options like Very Aggressive and Very Defensive, traders can control the width of IFVG zones to suit their risk management strategy—whether they prefer high-risk setups or low-risk setups.
Display and Color Settings : This section enables users to customize the appearance of the IFVG zones on their charts. Traders can set different colors for Bullish and Bearish zones, allowing for easier distinction and improved visualization.
Alert Settings : One of the standout features of the IFVG indicator is the alert system. By setting up alerts, users can be notified whenever the price approaches a demand or supply zone.
Alerts can be customized to trigger Once Per Bar (one alert per bar) or Per Bar Close (alert at the close of each bar), ensuring that traders stay updated on critical price movements without needing to monitor the chart continuously.
🔵 Conclusion
The ICT Implied Fair Value Gap (IFVG) indicator is a powerful and sophisticated tool in technical analysis, allowing professional traders to identify hidden supply and demand zones and use them as entry and exit points for buy and sell trades.
This indicator’s automatic detection of IFVG zones helps traders uncover hidden trading opportunities that can enhance their analysis.
While the IFVG indicator offers numerous advantages, it is important to use it in conjunction with other technical analysis tools and sound risk management practices.
IFVG alone does not guarantee profitability in trading; it works best when combined with other indicators such as volume analysis and trend-following indicators for a comprehensive trading strategy.
ICT Open Range Gap & 1st FVG (fadi)In his 2024 mentorship program, ICT detailed how price action interacts with Open Range Gaps and the initial 1-minute Fair Value Gap following the market open at 9:30 AM.
What is an Open Range Gap?
An Open Range Gap occurs when the market opens at 9:30 AM at a higher or lower level compared to the previous day's close at 4:14 PM, primarily relevant in futures trading. According to ICT, there is a statistical probability of 70% that the price action will close 50% or more of the Open Range Gap within the first 30 minutes of trading (9:30 AM to 10:00 AM).
What is the First 1-Minute Fair Value Gap?
ICT places significant emphasis on the first 1-minute Fair Value Gap (FVG) that forms after the market opens at 9:30 AM. The FVG must occur at 9:31 AM or later to be considered valid. This gap often presents key opportunities for traders, as it represents a temporary imbalance between supply and demand that the market seeks to correct.
Understanding and leveraging these patterns can enhance trading strategies by offering insights into potential price movements shortly after market open.
ICT Open Range Gap & 1st FVG
This indicator is engineered to identify and highlight the Open Range Gaps and the first 1-minute Fair Value Gap. Furthermore, it functions across multiple timeframes, from seconds to hours, catering to various trading preferences. This flexibility is particularly beneficial for traders who favor higher timeframes or wish to observe these patterns' application at broader intervals.
Settings
The Open Range Gap indicator offers flexible display settings. It identifies the quadrants and provides optional color coding to distinguish them. Additionally, it tracks the "fill" level to visualize how far the price action has progressed into the gap, enhancing traders' ability to monitor and analyze price movements effectively. By default, the Open Range Gap will stop extending at 10:00 AM; however, there is an option to continue extending until the end of the trading day.
The 1st Fair Value Gap (FVG) can be viewed on any timeframe the indicator is active on, offering various styling options to match each trader's preferences. While the 1st FVG is particularly relevant to the day it is created, previous 1st FVGs within the same week may provide additional value. This indicator allows traders to extend Monday's 1st FVG, marking the first FVG of the week, or to extend all 1st FVGs throughout the week.
Counting Positive and Negative BarsCounting Positive and Negative Bars: It goes through a specified number of bars and counts how many are positive (close above the previous value) and how many are negative (close below the previous value).
Imbalance Criterion: If the count of negative bars exceeds that of positive bars by a configurable margin (such as 60%), it signals a possible buy (Long) condition. The opposite applies for sell (Short) conditions..
HTF Inversion Fair Value Gap | Flux Charts💎 GENERAL OVERVIEW
Introducing our new Higher Timeframe Inversion Fair Value Gaps (IFVG) indicator! Inversion Fair Value Gaps occur when a Fair Value Gap becomes invalidated. They reverse the role of the original Fair Value Gap, making a bullish zone bearish and vice versa. This indicator finds the latest IFVG in a higher timeframe and renders it in the current chart with it's divergence. For more information about the process, read the "HOW DOES IT WORK" section of the description.
Features of the new Higher Timeframe IFVG Indicator :
Renders The Higher Timeframe IFVG
Invalidation Borders
Variety Of Zone Detection / Sensitivity / Filtering / Invalidation Settings
High Customizability
🚩 UNIQUENESS
This indicator lets you take a look at the bigger picture by rendering the latest IFVG in a higher timeframe. You can see the current IFVG divergence to see how is the price action acting around the IFVG. You also can customize the FVG Filtering method, FVG & IFVG Zone Invalidation, Detection Sensitivity etc. according to your needs to get the best performance from the indicator.
📌 HOW DOES IT WORK ?
A Fair Value Gap generally occur when there is an imbalance in the market. They can be detected by specific formations within the chart. An Inversion Fair Value Gap is when a FVG becomes invalidated, thus reversing the direction of the FVG.
This indicator then renders the IFVG in a higher timeframe in your chart like this :
The opaque dashed lines at the top and the bottom of the IFVG indicate the bars that formed the original FVG. The middle dashed line that is semi-transparent shows the candlestick that invalidated the original FVG, thus created the current IFVG. The vertical solid top & bottom wicks indicate the current divergence of the highest & lowest points to the current IFVG.
The IFVGs can act as strong support & resistance points, depending on their creation volume and invalidation volume. Traders can use them for confirmation signals to their positions.
⚙️ SETTINGS
1. General Configuration
Higher Timeframe -> The higher timeframe to detect latest IFVG from. Keep in mind that his setting must be higher than the current timeframe.
IFVG Zone Invalidation -> Select between Wick & Close price for IFVG Zone Invalidation.
2. Fair Value Gaps
FVG Zone Invalidation -> Select between Wick & Close price for FVG Zone Invalidation.
Zone Filtering -> With "Average Range" selected, algorithm will find FVG zones in comparison with average range of last bars in the chart. With the "Volume Threshold" option, you may select a Volume Threshold % to spot FVGs with a larger total volume than average.
FVG Detection -> With the "Same Type" option, all 3 bars that formed the FVG should be the same type. (Bullish / Bearish). If the "All" option is selected, bar types may vary between Bullish / Bearish.
Detection Sensitivity -> You may select between Low, Normal or High FVG detection sensitivity. This will essentially determine the size of the spotted FVGs, with lower sensitivities resulting in spotting bigger FVGs, and higher sensitivities resulting in spotting all sizes of FVGs.
3. Dasboard
You can enable / disable the mitigation dashboard and customize it here.
4. Customization
Offset -> The number of candlesticks the IFVG will be rendered to the right of the latest bar.
Width -> The width of the rendered IFVG in candlesticks.
Unicorn ICT Signals [TradingFinder] Breaker Block + FVG Zones🔵 Introduction
The "ICT Unicorn Model" trading strategy in the "Inner Circle Trader" (ICT) style is one of the well-known strategies in the world of Forex and financial market trading.
The ICT methodology was developed by Michael Huddleston and is based on technical analysis and Price Action concepts.
This style focuses specifically on interpreting price movements and identifying optimal entry and exit points in the market.
In the Unicorn strategy, traders seek points where the probability of price reversal or trend continuation is high. This strategy is primarily based on recognizing and analyzing Price Action patterns and market structure.
By understanding"ICT Unicorn Model", traders can make more informed decisions about where to enter or exit trades, thereby increasing their chances of success in the market.
🟣 Understanding the Breaker Block
A Breaker Block is a specialized form of an Order Block that changes its role after a key market level is broken. Typically, an Order Block is an area on the chart where large institutional orders are likely to be placed, providing strong support or resistance.
However, when this area is breached, and the price moves in the opposite direction, it transforms into what is known as a Breaker Block. This shift indicates a reversal in market sentiment, turning the previous support into resistance or vice versa, thereby signaling a potential trend change to traders.
🟣 The Significance of the Fair Value Gap (FVG)
The Fair Value Gap (FVG) refers to an area on a price chart where the price rapidly moves through a level, leaving behind a gap. This gap represents an imbalance between supply and demand and is often seen as a potential area for price to return and fill the gap.
These zones are crucial for traders as they can indicate future price movements, providing opportunities to enter or exit trades.
🟣 Defining the ICT Unicorn Model
When an FVG overlaps with a Breaker Block, it forms a highly significant trading area known as a Unicorn. This overlap creates an ideal zone for traders to enter the market, as it combines two powerful technical signals.
The Unicorn Model is therefore considered an optimal strategy for identifying precise entry and exit points in the financial markets.
Demand ICT Unicorn Model :
Supply ICT Unicorn Model :
🔵 How to Use
🟣 Bullish ICT Unicorn
The Bullish ICT Unicorn model is applicable when the market is in an uptrend, and traders are seeking buying opportunities.
Follow these steps to identify Bullish ICT Unicorn :
Identify the Bullish Breaker Block : Locate an area where the price moved upward after breaking an Order Block. This area now acts as a Breaker Block.
Identify the Bullish FVG : Look for a Fair Value Gap near the Breaker Block.
Confirm the Unicorn : When the Bullish Breaker Block and Bullish FVG overlap, a Bullish Unicorn is confirmed. Traders can enter a buy position when the price returns to this zone.
🟣Bearish ICT Unicorn
The Bearish ICT Unicorn model is used when the market is in a downtrend, and traders are looking for selling opportunities.
To identify Bearish ICT Unicorn, follow these steps :
Identify the Bearish Breaker Block : Find an area where the price moved downward after breaking an Order Block. This area now acts as a Breaker Block.
Identify the Bearish FVG : Check if a Fair Value Gap has formed near the Breaker Block.
Confirm the Unicorn : When the Bearish Breaker Block and Bearish FVG overlap, a Bearish Unicorn is confirmed. Traders can enter a sell position when the price returns to this zone.
🔵 Setting
🟣 Global Setting
Pivot Period of Order Blocks Detector : Enter the desired pivot period to identify the Order Block.
Order Block Validity Period (Bar) : You can specify the maximum time the Order Block remains valid based on the number of candles from the origin.
Mitigation Level Breaker Block : Determining the basic level of a Breaker Block. When the price hits the basic level, the Breaker Block due to mitigation.
Mitigation Level FVG : Determining the basic level of a FVG. When the price hits the basic level, the FVG due to mitigation.
Mitigation Level Unicorn : Determining the basic level of a Unicorn Block. When the price hits the basic level, the Unicorn Block due to mitigation.
🟣 Unicorn Block Display
Show All Unicorn Block : If it is turned off, only the last Order Block will be displayed.
Demand Unicorn Block : Show or not show and specify color.
Supply Unicorn Block : Show or not show and specify color.
🟣 Breaker Block Display
Show All Breaker Block : If it is turned off, only the last Breaker Block will be displayed.
Demand Main Breaker Block : Show or not show and specify color.
Demand Sub (Propulsion & BoS Origin) Breaker Block : Show or not show and specify color.
Supply Main Breaker Block : Show or not show and specify color.
Supply Sub (Propulsion & BoS Origin) Breaker Block : Show or not show and specify color.
🟣 Fair Value Gap Display
Show Bullish FVG : Toggles the display of demand-related boxes.
Show Bearish FVG : Toggles the display of supply-related boxes.
🟣 Logic Settings
🟣 Order Block Refinement
Refine Order Blocks : Enable or disable the refinement feature. Mode selection.
🟣 FVG Filter
FVG Filter : This refines the number of identified FVG areas based on a specified algorithm to focus on higher quality signals and reduce noise.
Types of FVG filters :
Very Aggressive Filter: Adds a condition where, for an upward FVG, the last candle's highest price must exceed the middle candle's highest price, and for a downward FVG, the last candle's lowest price must be lower than the middle candle's lowest price. This minimally filters out FVGs.
Aggressive Filter: Builds on the Very Aggressive mode by ensuring the middle candle is not too small, filtering out more FVGs.
Defensive Filter: Adds criteria regarding the size and structure of the middle candle, requiring it to have a substantial body and specific polarity conditions, filtering out a significant number of FVGs.
Very Defensive Filter: Further refines filtering by ensuring the first and third candles are not small-bodied doji candles, retaining only the highest quality signals.
🟣 Alert
Alert Name : The name of the alert you receive.
Alert ICT Unicorn Model Block Mitigation :
On / Off
Message Frequency :
This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".
Show Alert Time by Time Zone :
The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.
🔵Conclusion
The Unicorn Model in ICT, utilizing the concepts of Breaker Blocks and Fair Value Gaps, provides an effective tool for identifying entry and exit points in financial markets. By offering more precise signals, this model helps traders make better decisions and minimize trading risks.
Success in applying this model requires practice and a deep understanding of market structure, but it can significantly improve trading performance.
Multiple Naked LevelsPURPOSE OF THE INDICATOR
This indicator autogenerates and displays naked levels and gaps of multiple types collected into one simple and easy to use indicator.
VALUE PROPOSITION OF THE INDICATOR AND HOW IT IS ORIGINAL AND USEFUL
1) CONVENIENCE : The purpose of this indicator is to offer traders with one coherent and robust indicator providing useful, valuable, and often used levels - in one place.
2) CLUSTERS OF CONFLUENCES : With this indicator it is easy to identify levels and zones on the chart with multiple confluences increasing the likelihood of a potential reversal zone.
THE TYPES OF LEVELS AND GAPS INCLUDED IN THE INDICATOR
The types of levels include the following:
1) PIVOT levels (Daily/Weekly/Monthly) depicted in the chart as: dnPIV, wnPIV, mnPIV.
2) POC (Point of Control) levels (Daily/Weekly/Monthly) depicted in the chart as: dnPoC, wnPoC, mnPoC.
3) VAH/VAL STD 1 levels (Value Area High/Low with 1 std) (Daily/Weekly/Monthly) depicted in the chart as: dnVAH1/dnVAL1, wnVAH1/wnVAL1, mnVAH1/mnVAL1
4) VAH/VAL STD 2 levels (Value Area High/Low with 2 std) (Daily/Weekly/Monthly) depicted in the chart as: dnVAH2/dnVAL2, wnVAH2/wnVAL2, mnVAH1/mnVAL2
5) FAIR VALUE GAPS (Daily/Weekly/Monthly) depicted in the chart as: dnFVG, wnFVG, mnFVG.
6) CME GAPS (Daily) depicted in the chart as: dnCME.
7) EQUILIBRIUM levels (Daily/Weekly/Monthly) depicted in the chart as dnEQ, wnEQ, mnEQ.
HOW-TO ACTIVATE LEVEL TYPES AND TIMEFRAMES AND HOW-TO USE THE INDICATOR
You can simply choose which of the levels to be activated and displayed by clicking on the desired radio button in the settings menu.
You can locate the settings menu by clicking into the Object Tree window, left-click on the Multiple Naked Levels and select Settings.
You will then get a menu of different level types and timeframes. Click the checkboxes for the level types and timeframes that you want to display on the chart.
You can then go into the chart and check out which naked levels that have appeared. You can then use those levels as part of your technical analysis.
The levels displayed on the chart can serve as additional confluences or as part of your overall technical analysis and indicators.
In order to back-test the impact of the different naked levels you can also enable tapped levels to be depicted on the chart. Do this by toggling the 'Show tapped levels' checkbox.
Keep in mind however that Trading View can not shom more than 500 lines and text boxes so the indocator will not be able to give you the complete history back to the start for long duration assets.
In order to clean up the charts a little bit there are two additional settings that can be used in the Settings menu:
- Selecting the price range (%) from the current price to be included in the chart. The default is 25%. That means that all levels below or above 20% will not be displayed. You can set this level yourself from 0 up to 100%.
- Selecting the minimum gap size to include on the chart. The default is 1%. That means that all gaps/ranges below 1% in price difference will not be displayed on the chart. You can set the minimum gap size yourself.
BASIC DESCRIPTION OF THE INNER WORKINGS OF THE INDICTATOR
The way the indicator works is that it calculates and identifies all levels from the list of levels type and timeframes above. The indicator then adds this level to a list of untapped levels.
Then for each bar after, it checks if the level has been tapped. If the level has been tapped or a gap/range completely filled, this level is removed from the list so that the levels displayed in the end are only naked/untapped levels.
Below is a descrition of each of the level types and how it is caluclated (algorithm):
PIVOT
Daily, Weekly and Monthly levels in trading refer to significant price points that traders monitor within the context of a single trading day. These levels can provide insights into market behavior and help traders make informed decisions regarding entry and exit points.
Traders often use D/W/M levels to set entry and exit points for trades. For example, entering long positions near support (daily close) or selling near resistance (daily close).
Daily levels are used to set stop-loss orders. Placing stops just below the daily close for long positions or above the daily close for short positions can help manage risk.
The relationship between price movement and daily levels provides insights into market sentiment. For instance, if the price fails to break above the daily high, it may signify bearish sentiment, while a strong breakout can indicate bullish sentiment.
The way these levels are calculated in this indicator is based on finding pivots in the chart on D/W/M timeframe. The level is then set to previous D/W/M close = current D/W/M open.
In addition, when price is going up previous D/W/M open must be smaller than previous D/W/M close and current D/W/M close must be smaller than the current D/W/M open. When price is going down the opposite.
POINT OF CONTROL
The Point of Control (POC) is a key concept in volume profile analysis, which is commonly used in trading.
It represents the price level at which the highest volume of trading occurred during a specific period.
The POC is derived from the volume traded at various price levels over a defined time frame. In this indicator the timeframes are Daily, Weekly, and Montly.
It identifies the price level where the most trades took place, indicating strong interest and activity from traders at that price.
The POC often acts as a significant support or resistance level. If the price approaches the POC from above, it may act as a support level, while if approached from below, it can serve as a resistance level. Traders monitor the POC to gauge potential reversals or breakouts.
The way the POC is calculated in this indicator is by an approximation by analysing intrabars for the respective timeperiod (D/W/M), assigning the volume for each intrabar into the price-bins that the intrabar covers and finally identifying the bin with the highest aggregated volume.
The POC is the price in the middle of this bin.
The indicator uses a sample space for intrabars on the Daily timeframe of 15 minutes, 35 minutes for the Weekly timeframe, and 140 minutes for the Monthly timeframe.
The indicator has predefined the size of the bins to 0.2% of the price at the range low. That implies that the precision of the calulated POC og VAH/VAL is within 0.2%.
This reduction of precision is a tradeoff for performance and speed of the indicator.
This also implies that the bigger the difference from range high prices to range low prices the more bins the algorithm will iterate over. This is typically the case when calculating the monthly volume profile levels and especially high volatility assets such as alt coins.
Sometimes the number of iterations becomes too big for Trading View to handle. In these cases the bin size will be increased even more to reduce the number of iterations.
In such cases the bin size might increase by a factor of 2-3 decreasing the accuracy of the Volume Profile levels.
Anyway, since these Volume Profile levels are approximations and since precision is traded for performance the user should consider the Volume profile levels(POC, VAH, VAL) as zones rather than pin point accurate levels.
VALUE AREA HIGH/LOW STD1/STD2
The Value Area High (VAH) and Value Area Low (VAL) are important concepts in volume profile analysis, helping traders understand price levels where the majority of trading activity occurs for a given period.
The Value Area High/Low is the upper/lower boundary of the value area, representing the highest price level at which a certain percentage of the total trading volume occurred within a specified period.
The VAH/VAL indicates the price point above/below which the majority of trading activity is considered less valuable. It can serve as a potential resistance/support level, as prices above/below this level may experience selling/buying pressure from traders who view the price as overvalued/undervalued
In this indicator the timeframes are Daily, Weekly, and Monthly. This indicator provides two boundaries that can be selected in the menu.
The first boundary is 70% of the total volume (=1 standard deviation from mean). The second boundary is 95% of the total volume (=2 standard deviation from mean).
The way VAH/VAL is calculated is based on the same algorithm as for the POC.
However instead of identifying the bin with the highest volume, we start from range low and sum up the volume for each bin until the aggregated volume = 30%/70% for VAL1/VAH1 and aggregated volume = 5%/95% for VAL2/VAH2.
Then we simply set the VAL/VAH equal to the low of the respective bin.
FAIR VALUE GAPS
Fair Value Gaps (FVG) is a concept primarily used in technical analysis and price action trading, particularly within the context of futures and forex markets. They refer to areas on a price chart where there is a noticeable lack of trading activity, often highlighted by a significant price movement away from a previous level without trading occurring in between.
FVGs represent price levels where the market has moved significantly without any meaningful trading occurring. This can be seen as a "gap" on the price chart, where the price jumps from one level to another, often due to a rapid market reaction to news, events, or other factors.
These gaps typically appear when prices rise or fall quickly, creating a space on the chart where no transactions have taken place. For example, if a stock opens sharply higher and there are no trades at the prices in between the two levels, it creates a gap. The areas within these gaps can be areas of liquidity that the market may return to “fill” later on.
FVGs highlight inefficiencies in pricing and can indicate areas where the market may correct itself. When the market moves rapidly, it may leave behind price levels that traders eventually revisit to establish fair value.
Traders often watch for these gaps as potential reversal or continuation points. Many traders believe that price will eventually “fill” the gap, meaning it will return to those price levels, providing potential entry or exit points.
This indicator calculate FVGs on three different timeframes, Daily, Weekly and Montly.
In this indicator the FVGs are identified by looking for a three-candle pattern on a chart, signalling a discrete imbalance in order volume that prompts a quick price adjustment. These gaps reflect moments where the market sentiment strongly leans towards buying or selling yet lacks the opposite orders to maintain price stability.
The indicator sets the gap to the difference from the high of the first bar to the low of the third bar when price is moving up or from the low of the first bar to the high of the third bar when price is moving down.
CME GAPS (BTC only)
CME gaps refer to price discrepancies that can occur in charts for futures contracts traded on the Chicago Mercantile Exchange (CME). These gaps typically arise from the fact that many futures markets, including those on the CME, operate nearly 24 hours a day but may have significant price movements during periods when the market is closed.
CME gaps occur when there is a difference between the closing price of a futures contract on one trading day and the opening price on the following trading day. This difference can create a "gap" on the price chart.
Opening Gaps: These usually happen when the market opens significantly higher or lower than the previous day's close, often influenced by news, economic data releases, or other market events occurring during non-trading hours.
Gaps can result from reactions to major announcements or developments, such as earnings reports, geopolitical events, or changes in economic indicators, leading to rapid price movements.
The importance of CME Gaps in Trading is the potential for Filling Gaps: Many traders believe that prices often "fill" gaps, meaning that prices may return to the gap area to establish fair value.
This can create potential trading opportunities based on the expectation of gap filling. Gaps can act as significant support or resistance levels. Traders monitor these levels to identify potential reversal points in price action.
The way the gap is identified in this indicator is by checking if current open is higher than previous bar close when price is moving up or if current open is lower than previous day close when price is moving down.
EQUILIBRIUM
Equilibrium in finance and trading refers to a state where supply and demand in a market balance each other, resulting in stable prices. It is a key concept in various economic and trading contexts. Here’s a concise description:
Market Equilibrium occurs when the quantity of a good or service supplied equals the quantity demanded at a specific price level. At this point, there is no inherent pressure for the price to change, as buyers and sellers are in agreement.
Equilibrium Price is the price at which the market is in equilibrium. It reflects the point where the supply curve intersects the demand curve on a graph. At the equilibrium price, the market clears, meaning there are no surplus goods or shortages.
In this indicator the equilibrium level is calculated simply by finding the midpoint of the Daily, Weekly, and Montly candles respectively.
NOTES
1) Performance. The algorithms are quite resource intensive and the time it takes the indicator to calculate all the levels could be 5 seconds or more, depending on the number of bars in the chart and especially if Montly Volume Profile levels are selected (POC, VAH or VAL).
2) Levels displayed vs the selected chart timeframe. On a timeframe smaller than the daily TF - both Daily, Weekly, and Monthly levels will be displayed. On a timeframe bigger than the daily TF but smaller than the weekly TF - the Weekly and Monthly levels will be display but not the Daily levels. On a timeframe bigger than the weekly TF but smaller than the monthly TF - only the Monthly levels will be displayed. Not Daily and Weekly.
CREDITS
The core algorithm for calculating the POC levels is based on the indicator "Naked Intrabar POC" developed by rumpypumpydumpy (https:www.tradingview.com/u/rumpypumpydumpy/).
The "Naked intrabar POC" indicator calculates the POC on the current chart timeframe.
This indicator (Multiple Naked Levels) adds two new features:
1) It calculates the POC on three specific timeframes, the Daily, Weekly, and Monthly timeframes - not only the current chart timeframe.
2) It adds functionaly by calculating the VAL and VAH of the volume profile on the Daily, Weekly, Monthly timeframes .
