FVG Channel Indicator MT5
- Utilities
- Mehnoosh Karimi
- Version: 3.1
- Activations: 10
Fair Value Gap Channel Indicator MetaTrader 5
The Fair Value Gap (FVG) Channel Indicator, developed based on ICT concepts and Smart Money principles, is designed to calculate and display the average range of Fair Value Gaps. By plotting a dynamic price channel, this indicator highlights key zones related to unfilled (unmitigated) Fair Value Gaps, helping traders identify potential reversal areas.
FVG Channel Indicator Specifications
The specifications of the Fair Value Gap Channel Indicator are shown in the table below:
| Feature Category | Details |
| Indicator Categories | Smart Money MT5 Indicators |
| Platforms | MetaTrader 5 |
| Trading Skills | Intermediate |
| Indicator Types | Reversal MT5 Indicators |
| Timeframe | Multi-Timeframe MT5 Indicators |
| Trading Style | Swing Trading MT5 Indicators |
| Trading Instruments | Forex MT5 Indicators |
FVG Channel Indicator at a Glance
The FVG Channel Indicator generates buy and sell signals using arrow markers based on price interaction with the channel boundaries:
- When the price breaks below the lower band, a buy signal appears, marked with a green arrow.
- When the price moves above the upper band, a sell signal is generated, indicated by a red arrow.
Buy Signal Example
Based on the EUR/JPY 1-hour chart, the indicator generates a buy signal, shown by a green arrow.
As illustrated, the signal is triggered when the price exits the lower boundary of the channel, indicating a potential bullish reversal.
Uptrend analysis using the FVG Channel Indicator
Identification of a price reversal point and generation of a buy signal
Sell Signal Example
According to the GBP/USD chart, the indicator issues a sell signal in the highlighted area, represented by a red arrow.
Following this signal, the price experienced a strong downward movement, confirming the effectiveness of the channel breakout.
Downtrend analysis with the FVG Channel Indicator
Identification of an optimal sell entry point using the Fair Value Gap Channel
Fair Value Gap Channel Indicator Settings
The FVG Channel Indicator offers customizable parameters to adapt to different trading strategies:
- Unmitigated FVG Lookback: Determines the number of previous candles used to identify unfilled Fair Value Gaps
- Smoothing Length: Defines the smoothing period of the channel to reduce noise and improve clarity
Overview of adjustable parameters in the FVG Channel Indicator settings
Conclusion
The FVG Channel Indicator uses unfilled Fair Value Gaps to construct dynamic price channels on the chart.
These channels define upper, lower, and internal price levels, creating a structured framework for identifying potential market reversals.
In addition, the indicator provides timely buy and sell signals, making it a practical and reliable tool for traders applying ICT and Smart Money strategies across various market conditions.

