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OPEN-SOURCE SCRIPT

ICT - GAPs and Volume Imbalance

By Vulnerable_human_x
Updated

GAPs
Gaps are areas on chart where the price have moved sharply up or down, with no trading in between. Gaps often fill, but they don't have to.

Volume Imbalance
Volume imbalance - determined using 2 candles
Bullish Volume Imbalance - area between the close of 1st candle and the open of 2nd candle
Bearish Volume Imbalance - area between the close of 1st candle and the open of 2nd candle


How to use the indicator:-

When you find imbalance in volume or a GAP in the chart, you may expect price to rebalance it before continuation.

Importantly, GAPs/Imbalances do not always fill. Traders should never assume that a gap/imbalance will fill without understanding the reasons for the gap and monitoring trading activity around the gap.

Pair it with your current bias for better results.
Release Notes
  • Added Balanced Price Range to the script
    Added Fair Value Gaps to the script
    Box Border can now be modified
    Box length is extended till mitigated
    Mitigated Boxes can be hidden or differentiated with a unique color
    Box Labels can now be hidden
    other bug fixes
Release Notes
- Added option to extend unmitigated Volume Imbalance Boxes
- Added option to disable extending unmitigated boxes
Release Notes
  • Added Option to extend all VI boxes (Mitigated/Unmitigated)
Release Notes
- Volume Imbalance Mitigation Color Issue Fixed
Release Notes
- Added option to change label color of Mitigated Box labels. Set it to 0% opacity to hide the text.
Release Notes
- GAPs are now marked between bodies of the candles instead of wicks
- Added alert option for FVGs, VIs and GAPs
Release Notes
1. Added Implied Fair Value Gap (I.FVG) [Toggle on/off] - Beta Version
2. Added New Mitigation Type - Engulf, Wherein body close is required for a gap/imbalance to be considered as mitigated. Default is set to "Engulf". Change it to "Mitigate" for the older model.
3. Default Mitigation type for GAP is set to Consequent Encroachment (50% of the Range)
4. Added alerts for I.FVG
Release Notes
When price is inside a Box (FVG/VI/GAP/BPR/I.FVG), that particular box will be in spotlight compared to other boxes. It will be a treat to watch :)
Release Notes
- Added Mid line (C.E.) for FVG Boxes. Toggle on/off enabled.
- Added alerts when price mitigates FVG,GAP, VI and Implied FVG Boxes (Works only when the mitigation type is set to engulf).
Release Notes
- Minor Bug Fix
Release Notes
- Minor bug fix
Release Notes
bug fix
Release Notes
Change in logic for plotting Volume Imbalances (VIs)
Release Notes
Added new mitigation type for FVG Boxes called "Rebalance" wherein if a FVG is partially rebalanced, only the remaining unfilled range is extended in time.
When it is fully rebalanced (Candle low trading below bullish FVG or Candle high trading above bearish FVG), it stops extending further in time.
Box highlight feature (animation) and alerts will work for this mitigation type.
Release Notes
Bug Fix
Release Notes
Version 2.0
  • Added Inverse FVG (FVG Mitigation must be set to ‘ENGULF’ for Inverse FVG to work)
  • Added alerts for Inverse FVG formation and Mitigation
  • Inverse FVG Box Limit option enabled
  • Added Box Highlight feature (Animation) when price is inside Inverse FVG Box
  • Added line types for FVG and Inverse FVG Consequent Encroachment (C.E.)
  • Option for modifying the Label position for the Boxes enabled.
  • Minor Bug Fix

Release Notes
- Minor Bug Fix
Release Notes
- Minor Bug Fix
Release Notes
Version 2.1
Consecutive FVGs in the same direction can now be mapped as Liquidity Void using the new FVG mode "Liquidity Void".
Release Notes
Version 2.2
- Included Volume Imbalance types (None/Classic/Advanced) for user selection. 'Classic' shows a specific type of Volume Imbalance, while 'Advanced' displays all variations.
Release Notes
- Minor Bug Fix
Release Notes
Version 3.0
  • GAP types now include ‘True GAP’ and ‘GAP + Inefficiency’. True GAPs are price zones with no buyside or sellside delivery at all. GAP + Inefficiency, however, cover both regions where there's an absence of buyside and sellside delivery, and areas with one-sided price action (the gap between the close of the previous candle and the open of the current one).
  • Added Consequent Encroachment (C.E.) for GAPs.
  • GAPs now include the "Rebalance" mitigation type. The "C.E. Type" mitigation has been discontinued.
  • BPR Boxes have been discontinued due to inaccuracies and flawed logic.
  • Added alerts for Liquidity Void.
  • A minor bug has been fixed in Advanced VIs where gaps were incorrectly labeled as VIs.
  • Significant improvements have been made to the Implied FVG logic, including a major bug fix.
Release Notes
- Minor Bug Fix
Release Notes
- Minor Bug Fix
fairvaluegapfvggapictictconceptsifvgimbalanceliquidityvoidPrice Volume Trend (PVT)volumeimbalance

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

Vulnerable_human_x
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