ICT - GAPs and Volume Imbalance

2022年10月25日

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.

2022年11月2日

發行說明

• 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
  

2022年12月16日

發行說明

- Added option to extend unmitigated Volume Imbalance Boxes
- Added option to disable extending unmitigated boxes

2022年12月25日

發行說明

• Added Option to extend all VI boxes (Mitigated/Unmitigated)
  

2022年12月29日

發行說明

- Volume Imbalance Mitigation Color Issue Fixed

2023年1月25日

發行說明

- Added option to change label color of Mitigated Box labels. Set it to 0% opacity to hide the text.

2023年2月14日

發行說明

- GAPs are now marked between bodies of the candles instead of wicks
- Added alert option for FVGs, VIs and GAPs

2023年4月15日

發行說明

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

2023年4月18日

發行說明

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 :)

2023年5月29日

發行說明

- 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).

2023年6月2日

發行說明

- Minor Bug Fix

2023年7月7日

發行說明

- Minor bug fix

2023年9月7日

發行說明

bug fix

2024年1月10日

發行說明

Change in logic for plotting Volume Imbalances (VIs)

2024年1月14日

發行說明

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.

2024年1月23日

發行說明

Bug Fix

2024年2月26日

發行說明

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
  

2024年2月26日

發行說明

- Minor Bug Fix

2024年2月26日

發行說明

- Minor Bug Fix

2024年3月6日

發行說明

Version 2.1
Consecutive FVGs in the same direction can now be mapped as Liquidity Void using the new FVG mode "Liquidity Void".

2024年3月8日

發行說明

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.

2024年3月9日

發行說明

- Minor Bug Fix

2024年8月25日

發行說明

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.
  

2024年8月25日

發行說明

- Minor Bug Fix

2024年8月26日

發行說明

- Minor Bug Fix

2024年11月21日

發行說明

Version 3.1
- Upgraded the code to Pine Script v6
- Settings now include an option to turn off box highlights (Animation) when price is within.
- Minor Bug Fix