Fair Value Gaps and Breakaway Gaps

A Fair Value Gap (FVG) is a three-candle price imbalance where price moves aggressively in one direction, creating a gap between the wicks of the first and third candle.

How to Identify an FVG:

1. The second candle must have a large body, showing strong displacement.
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3. The wick of the third candle must not overlap with the wick of the first candle, leaving an inefficiency.
4. The third candle should not close beyond the high (bullish) or low (bearish) of the second candle.

Usage:

📌 Internal Range Liquidity – Price often retraces to test FVGs before continuing.

📌 Confluence for Entries – FVGs inside a higher timeframe point of interest (POI) strengthen trade setups.

Breakaway Gaps

A Breakaway Gap is a specific type of FVG where the third candle closes above the high (bullish) or below the low (bearish) of the second candle, confirming a shift in order flow.

How to Identify a Breakaway Gap:

1. The first two candles form an FVG structure (large-bodied second candle with an imbalance).
2. The third candle closes beyond the high (bullish) or low (bearish) of the second candle, confirming strong momentum.
3. This gap often acts as a Momentum of a continuation and draw on liquidity since it is likely to be filled if the market has pulled back to it.

Usage:

📌 Momentum Confirmation – A breakaway gap signals strong smart money commitment.

📌 Continuation Entries – If price retests the gap, it offers a high-probability that it will be filled.

Key Difference:

🔹 FVGs → Price inefficiencies that are likely to get revisited. The third candle does not close above the second candle’s high/below the second candle’s low.

🔹 Breakaway Gaps → A stronger FVG where the third candle closes beyond the second candle’s high/low, confirming directional intent.

🧬The Indicator.

🤔Why This Indicator is a Must-Have for Smart Money Traders❓

🔹 Automatically Spot Key Price Imbalances Manually marking Fair Value Gaps (FVGs) and Breakaway Gaps can be time-consuming and prone to errors. This indicator scans the market and automatically highlights these high-probability areas, so you never miss an opportunity.

🤔Why This Indicator Gives You an Edge⁉

🔹 No More Guesswork – The indicator automatically detects both FVGs and Breakaway Gaps, removing any subjectivity.

🔹 Enhance Market Timing – Know exactly when price is likely to retrace (FVG) or when momentum is confirmed (Breakaway Gap).

🔹 Perfect for ICT Traders – If you trade smart money concepts, this tool aligns with ICT principles, helping you refine your edge.

🔹 Works in Any Market – Whether you trade Forex, Indices, Crypto, or Stocks, this indicator adapts to price action seamlessly.

What the indicator can give you. 🚀 Level up your trading with this FVG & Breakaway Gap Indicator!

✅ Get precise entries & confirmations

✅ Save time & trade smarter

✅ Let the indicator do the work—so you can focus on execution

Step 1: Renting the Indicator on MQL5 Go to the MQL5 Market and search for the FVG & Breakaway Gap Indicator. Click on Rent and follow the payment process. Once the transaction is complete, go to MT5 > Tools > Options > Community and log into your MQL5 account.

Step 2: Installing the Indicator on MT5 Open MT5 and navigate to Market from the bottom panel. Go to Purchased and locate the indicator. Click Install to add it to your platform.

Step 3: Loading the Indicator on a Chart Open a chart for your preferred instrument (Forex, Indices, Stocks, Crypto). Go to Navigator > Indicators > Market and find your installed FVG & Breakaway Gap Indicator. Drag and drop it onto the chart. Adjust settings such as colours and alert preferences as needed.

Step 4: Using the Indicator for Entries & Stop Loss Entry: When an FVG or Breakaway Gap forms inside a higher timeframe POI, wait for price confirmation. Stop Loss: Place SL below the first candle in a bullish FVG or above the first candle in a bearish FVG. Trade Management: If price retests the FVG, it can provide a high-probability entry.