Time-Based Fair Value Gaps (FVG) with Inversions (iFVG)

How it works

The Time-Based Fair Value Gaps (FVG) indicator identifies market imbalances by detecting gaps between candle highs and lows within specific 10-minute time windows. It uses precise rules to recognize bullish and bearish fair value gaps, focusing on periods of high institutional activity during trading sessions.

The indicator tracks these gaps and monitors their mitigation, converting them into inverted FVGs (iFVGs) that serve as critical support and resistance zones. When price closes through an original gap, it becomes an iFVG, which traders can use to identify potential reversal points and institutional order accumulation zones.

Why it may be useful

This indicator provides traders with a sophisticated tool for understanding market microstructure and institutional trading dynamics. By filtering and highlighting specific market imbalances, it helps traders identify high-probability entry and exit points that align with institutional order flow and market maker strategies.

The customizable features, such as ATR filtering, session-specific detection, and retest signal options, make it a powerful analytical tool that goes beyond traditional gap detection methods. Traders can gain insights into market structure, liquidity zones, and potential trend reversals with greater precision.

When to explore it

The FVG indicator is most effective on 1-5 minute charts, particularly during high-liquidity trading sessions like the New York morning (7:00-11:00 AM EST) or London session (2:00-5:00 AM EST). It works best when traders are looking to identify market imbalances, potential reversal zones, and institutional trading activity.

Ideal for traders who want to implement ICT-style strategies, the indicator is particularly useful during key market transition periods, such as hourly opens and closes, and when tracking liquidity grabs or Judas swings. Traders should combine it with other ICT concepts like order blocks and breaker blocks for enhanced confluence.

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