Vacuum Block (ICT) indicator for MT4 Download - free - [TradingFinder]

The Vacuum Block indicator identifies and analyzes price void areas in the ICT (Inner Circle Trader) style. This indicator is typically created during volatility-triggering events such as FOMC meetings, NFP reports, or major news events like wars.

Due to the absence of activated orders and liquidity in these areas, prices tend to fill the voids and then return to their main trend.

Indicator Table

Vacuum Block in Uptrend

A bullish vacuum block forms when the opening price of a new candlestick is higher than the closing price of the previous one. The example chart below shows the USD/JPY currency pair in a one-minute timeframe.

The price fills the created space with a long shadow, activating the liquidity in this area before resuming its main trend. Traders look for confirmations, such as market structure changes on lower timeframes, to identify suitable entry points for buy positions.

Vacuum Block in Downtrend

In the chart of the AUD/USD currency pair in a 30-minute timeframe, the price returns to the area after creating a void, activating liquidity and orders, and continuing its downtrend. Once necessary confirmations are received, traders can open a sell position and set the stop-loss at the highest point of the vacuum block.

Indicator Settings

• Color theme of chart and object: Background color of the chart;
• To shift the end of vacuum: Number of displayed vacuum block areas, default value: 5.

Conclusion

To trade using the Vacuum Block indicator, it is essential first to understand the event and the price impact that led to the gap formation. Traders need patience and should wait for the price to return to the gaps; after receiving the required confirmations, they can confidently enter the trade.