Fair Value Gap Indicator for MetaTrader 4 by LuxAlgo
The Fair Value Gap (FVG) Indicator for MetaTrader 4 is a powerful tool designed to help traders identify and visualize market imbalances. These gaps occur when price moves rapidly, leaving zones where little or no trading took place. Traders use these areas as potential points for retracements, support/resistance, or Trend Continuation signals. The indicator automatically detects, marks, and tracks these gaps, providing clear visual feedback for both novice and experienced traders.
How the Fair Value Gap Indicator Works
The indicator operates by detecting candlestick price gaps that meet predefined thresholds:
- Color-Coded Gap Zones – Highlight valid fair value gaps on the chart for easy identification
- Gap Coverage Percentage – Displays how much of the gap has been filled, helping assess active versus completed zones
- Retracement & Continuation Signals – Price revisiting an FVG can suggest a potential bounce, pullback, or trend continuation
- Automatic Updates – Newly formed gaps are plotted in real-time, ensuring traders always see current market imbalance areas
By visualizing these zones, traders can anticipate key areas of price reaction, refine entries, place stops more strategically, and better plan exits.
Trading Applications
- Retracement Opportunities – Enter trades when price revisits an unfilled gap
- Trend Confirmation – FVGs in the direction of the trend reinforce strong momentum
- Support & Resistance Mapping – Gaps act as dynamic levels for placing stop-loss or take-profit orders
- Trade Planning – Use coverage percentage to gauge how active or filled a gap is for decision-making
- Multi-Timeframe Analysis – Identify critical imbalance zones across higher or lower timeframes for alignment
This makes the FVG Indicator particularly valuable for swing, intraday, and momentum traders.
Key Benefits
1. Automatic Gap Detection
Identifies FVGs without manual plotting, saving time and reducing errors.
2. Visual Clarity
Color-coded zones make market imbalances easy to spot at a glance.
3. Coverage Tracking
Shows percentage of gap filled, helping traders assess zone validity.
4. Trend & Retracement Support
Supports strategies targeting trend continuation or pullbacks into imbalanced zones.
5. Customizable Settings
Adjust thresholds, colors, and alerts to suit different trading styles.
Conclusion
The Fair Value Gap Indicator for MT4 is an essential tool for traders seeking to track market imbalances and anticipate price reactions. By automatically marking FVGs, showing coverage status, and providing intuitive visual cues, it helps traders plan entries, manage risk, and enhance strategy precision. Whether targeting liquidity fills, retracements, or trend continuations, this indicator makes key imbalance levels immediately actionable.
