Fair Value Gap FVG Indicator MT4
- Indicators
- Eda Kaya
- Version: 1.6
Fair Value Gap (FVG) Indicator for MetaTrader 4 – Download and Guide
Traders rely on a variety of tools and strategies to discover profitable investment opportunities. Among these, the Fair Value Gap (FVG) indicator in MetaTrader 4 stands out as a highly effective tool. An FVG represents a price gap within the market structure where supply and demand are not balanced. These gaps emerge during sharp price movements. In simple terms, when three candlesticks form, the gap between the first and third candlestick is referred to as the "Fair Value Gap."
«Indicator Installation & User Guide»
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Indicator Specifications Table
| Category | ICT - Liquidity - Smart Money |
| Platform | Meta Trader 4 |
| Skill Level | Intermediate |
| Indicator Type | Reversal - Continuation |
| Time Frame | Multi-Timeframe |
| Trading Style | Intraday Trading |
| Market | All Markets |
Indicator Overview
The Fair Value Gap indicator is designed to automatically identify and highlight FVGs as boxes on the chart. These gaps, which occur due to supply and demand imbalances, serve as crucial points for trend reversals. By recognizing these zones, traders can determine more accurate support and resistance levels. These areas often present excellent opportunities for entering or exiting trades based on trend reversals.
Uptrend Conditions
Using the Binance Coin (BNB) price chart on the 1-hour timeframe, the indicator demonstrates how, in an uptrend, prices frequently return to the Fair Value Gap zones before resuming their upward momentum. Each time the trend revisits these zones; it creates ideal conditions for initiating long trade positions.
Downtrend Conditions
For downtrend scenarios, the USD/CAD currency pair price chart on the 30-minute timeframe highlights how the indicator performs. Following a price correction, the trend often returns to the Fair Value Gap zones identified by the indicator and then continues its prior movement. These FVG zones provide valuable entry points for short trades when candlesticks reach these levels.
Settings
- Theme Customization: The background color for the indicator display can be adjusted to either Dark or Light.
- Candles Analyzed: Users can set the indicator to analyze up to 1,000 candlesticks for identifying FVGs.
- Object Suffix: A custom suffix can be added to label the FVG boxes.
- Calculation Modes: This option allows users to define how the indicator identifies and calculates gaps.
- Show/Hide FVGs: Users can toggle the visibility of the FVG boxes.
- Show Latest FVGs: When enabled, the indicator displays only the most recent price gaps.
Conclusion
The Fair Value Gap (FVG) indicator is a powerful tool for pinpointing entry and exit opportunities while defining key support and resistance levels. This tool is particularly effective for traders who understand liquidity concepts and the dynamics of supply and demand. By automatically identifying and marking areas of market imbalance, the FVG indicator equips traders with critical insights into price trends and reversal zones.
The indicator’s automated approach to analyzing trends and marking gaps ensures precision, making it an indispensable tool for both novice and experienced traders.
