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ICT Implied Fair Value Gap (IFVG)

May 10, 2023
Jens

The Implied Fair Value Gap (IFVG) is a concept developed by ICT that identifies a three-candle pattern based on the presence of a larger candle body, followed by calculating the average of the surrounding candle shadows. Since this pattern is super powerful, we decided to create a script that finds the IFVG automatically for you. Handy right?

This indicator is designed to automatically recognize this pattern on your charts, and its range can be adjusted according to the user's preference. The Indicator is able to find patterns on a higher timeframe level and gives you alerts once the IFVG is created, which allows you to jump on the chart and see whats up.

The IFVG average can also be extended until a new corresponding IFVG is identified, effectively functioning as a support or resistance line. Additionally, this script includes alerts for detecting both bullish and bearish IFVG patterns so you are not missing out on the move.

Timeframe Settings

  1. Current Timeframe
  2. Higher Timeframe

Settings

  1. Size Threshold %
  2. IFVG Extension

Colors

  1. Bull Box/ Border
  2. Mid Line
  3. Bear Box/ Border
  4. Mid Line
What is the Implied Fair Value Gap (IFVG)?

The Implied Fair Value Gap (IFVG) is a concept developed by ICT that identifies a three-candle pattern based on the presence of a larger candle body, followed by calculating the average of the surrounding candle shadows. This powerful pattern can help traders identify potential price reversals or continuation, providing an edge in their trading decisions.

How can I customize the IFVG indicator according to my preferences?

You can customize the IFVG indicator using several settings, such as Size Threshold % for determining the pattern's significance, IFVG Extension for extending the average line, and Timeframe settings for analyzing patterns on different timeframes. Additionally, you can change the colors of the Bull Box/Border, Mid Line, Bear Box/Border, and Mid Line to make the indicator visually appealing on your charts.

How does the IFVG indicator work, and what features does it include?

The Implied Fair Value Gap (IFVG) is a concept developed by ICT that identifies a three-candle pattern based on the presence of a larger candle body, followed by calculating the average of the surrounding candle shadows. This powerful pattern can help traders identify potential price reversals or continuation, providing an edge in their trading decisions.

Can I use the IFVG indicator for different financial markets and instruments?

Yes, the IFVG indicator can be applied to various financial markets and instruments, such as stocks, forex, commodities, and cryptocurrencies, as it helps identify powerful price patterns regardless of the specific market. However, it's essential to understand the characteristics and dynamics of the specific market you're trading in to maximize the potential benefits of the IFVG indicator.