Fair Value Gap Absorption Indicator MT5 Download – Free – [TradingFinder]

The Fair Value Gap Absorption Indicator is one of the ICT concepts tools in technical analysis. This indicator marks the Fair Value Gap (FVG) zones on the chart by displaying them as colored boxes.
Fair Value Gaps represent the price imbalances created between candlesticks that indicate a one-sided dominance of supply or demand during a specific time.
A key feature of this tool is its ability to show the percentage of mitigation for each FVG zone.

Specification Table of Fair Value Gap Absorption Indicator

The specifications of the Fair Value Gap Absorption Indicator are shown in the table below.

Fair Value Gap Absorption Indicator at a Glance

The zones identified by the Fair Value Gap Absorption Indicator represent liquidity areas that the price often tends to revisit.
In this tool, bullish FVGs are shown as green boxes, while bearish FVGs are displayed as red boxes.
A price retracement to these areas is considered an important opportunity to enter trades in the direction of the market’s dominant trend.

Buy Setup

According to the 1-hour Cardano (ADA) chart, a bullish Fair Value Gap is marked as a green box.
As seen in the chart below, after the price retraces to this area, it absorbs the liquidity and continues its upward movement.

Sell Setup

According to the 30-minute EUR/USD chart, red boxes are drawn to indicate bearish FVG zones.
In this scenario, after the price returns to the marked area, it immediately reverses and begins a downward move.
Traders often consider such retracements to the colored boxes as potential entry opportunities.

Settings of Fair Value Gap Absorption Indicator

The settings of the Fair Value Gap Absorption Indicator are as follows:

• Fair Value Gap Width Filter: Width filter of the fair value gap
• Bearish Fair Value Gap Color: Color of the bearish fair value gap zone
• Bullish Fair Value Gap Color: Color of the bullish fair value gap zone
• Display Percentage of Mitigation: Percentage of mitigation within the FVG zone
• Display Historical Fair Value Gaps: Historical fair value gap zones on chart

Conclusion

The Fair Value Gap Absorption Indicator is designed to visualize Fair Value Gap zones on the chart.
In addition to marking FVGs as colored boxes, it also displays the percentage of each zone filled or mitigated.
Traders can, depending on their strategy, interpret price retracements to these levels as potential entry or exit opportunities.