gold fvg finder: identifying and trading market imbalances

Related: gold spread at r trend panel for metatrader 5 - another powerful indicator for MetaTrader 5 traders.

gold fvg finder
this indicator identifies areas of market imbalance on the chart. it provides a signal with an arrow when the price revisits such an area for the first time. this tool is suitable for gold, forex, and other liquid instruments across timeframes from m5 to h4.

Also recommended: i4 golden lion trend - similar indicator with strong performance on MetaTrader 5.

what is a fair value gap (fvg)?

a fair value gap, also known as an area of unfair pricing, represents a section of the chart where the price moved too rapidly. an fvg forms between the wicks of the first and third candles, with the body of the middle candle not fully covering this range. major market participants often leave unfilled orders in these zones, and the price typically returns to these levels to resolve them. the indicator's logic is based on this price behavior.

on-chart display:

- green rectangles indicate bullish fvg zones, suggesting an expected upward move when the price retraces into the zone.
- red rectangles indicate bearish fvg zones, suggesting an expected downward move when the price retraces into the zone.
- a dotted line within each zone represents the 50% level, known as consequent encroachment, which serves as a precise entry target within the zone.
- a green upward arrow signifies a buy signal when the price touches a bullish zone.
- a red downward arrow signifies a sell signal when the price touches a bearish zone.
- the information panel in the top right corner displays the current rsi value and the count of active zones visible on the screen.

once a zone has been touched for the first time, it is considered triggered and will no longer generate signals to prevent redundant entries at the same price level.

indicator settings:

- use rsi filter: enables an additional rsi filter. by default, this is disabled, and signals are generated solely based on the zone touch.
- rsi period: the calculation period for the rsi (default is 14).
- rsi oversold: the rsi level for buy signals when the filter is active (default is 40).
- rsi overbought: the rsi level for sell signals when the filter is active (default is 60).
- use alerts: enables pop-up notifications when a signal is triggered.
- bull colour: the color used for bullish fvg zones.
- bear colour: the color used for bearish fvg zones.
- line colour: the color of the 50% level line within the zone.
- max history: the number of past bars used to plot the zones.

recommended timeframe:

the recommended timeframe is m15. this timeframe was used for testing the indicator on gold (xauusd) and showed the optimal balance between signal frequency and quality. on m15, intraday imbalance zones are clearly identifiable, and the price frequently retests them within a single trading session.

the h1 timeframe is suitable for a more conservative trading approach with fewer signals, where each signal may carry more significance. timeframes m1 and m5 are not recommended due to the high volume of minor zones that can create market noise. the fvg strategy is versatile and performs effectively on currency pairs and stock indices.

trading recommendations:

this indicator highlights points of interest, rather than providing ready-made entry orders. optimal results are often achieved when a zone touch aligns with significant support or resistance levels on a higher timeframe. avoid trading against a clear trend solely because the price has entered an fvg zone. always implement a stop-loss order, positioned beyond the fvg zone.

You may also like: cointegration - excellent alternative for indicator users on MetaTrader 5.

#property copyright "robotfx"
#property link "https://robotfx.org"
#property version   "1.02"
#property indicator_chart_window
#property indicator_buffers 2
#property indicator_plots   2
#property indicator_label1  "buy signal"
#property indicator_type1   draw_arrow
#property indicator_color1  clrlime
#property indicator_style1  style_solid

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• This tool is provided for educational and testing purposes only.
• Past performance does not guarantee future results.
• Trading involves substantial risk of loss. Use on a demo account first.
• Results may vary depending on market conditions, broker, and settings.
• We recommend thorough backtesting and forward testing before using with real funds.