ICT MTF FVG [MK]

How it works

Fair Value Gaps are created by identifying price imbalances where a significant price move occurs without complete fill or trading within a specific range. The script analyzes price action across multiple timeframes to detect these gaps, creating visual boxes that represent areas where price has moved quickly without complete consolidation.

These FVG boxes are plotted to the right side of the chart to maintain chart clarity and preserve the original gap's midpoint. The system can detect and display FVGs across various timeframes including chart, 5, 10, 15, 30 minutes, 1hr, 4hr, 8hr, 12hr, daily, weekly, and monthly intervals.

Why it may be useful

Fair Value Gaps provide traders with critical insights into potential market inefficiencies and areas of significant price movement. By identifying these gaps, traders can anticipate potential support and resistance levels, helping them make more informed trading decisions and understand underlying market dynamics.

The multi-timeframe approach allows traders to gain a comprehensive view of market structure, revealing potential entry and exit points across different trading horizons. FVGs help traders recognize where price might potentially reverse or consolidate, offering a strategic advantage in understanding market behavior and potential future price movements.

When to explore it

Fair Value Gaps are most effective in markets with clear price momentum and distinct price action patterns. Traders should focus on FVGs in liquid markets with sufficient trading volume, where price moves can create meaningful gaps that represent genuine market inefficiencies.

The indicator works best when combined with other technical analysis tools, such as trend indicators or momentum oscillators. Traders should pay special attention to FVGs that align with broader market trends, significant support/resistance levels, and other confirming technical signals to enhance the probability of successful trades.

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