Vacuum Block (ICT) indicator for MT5 Download - free - [TradingFinder]

The Vacuum Block indicator identifies price gaps in market analysis caused by inactivity or intense buy and sell pressure during high-volatility periods.

These zones often emerge in response to significant economic or political events, and due to inactive orders and the absence of necessary liquidity, prices revert to these areas. Vacuum blocks are categorized into bullish and bearish types and marked with orange.

Indicator Table

Indicator in an Uptrend

On a 15-minute chart of the AUD/CHF currency pair, the price returns to this zone after a price gap forms to activate orders and absorb liquidity. This price action indicates the market's tendency to fill gaps and continue the prior trend. In these cases, traders seek buy confirmations on smaller time frames for entry.

Indicator in a Downtrend

A bearish vacuum block forms when the opening price of a new candlestick is lower than the closing price of the previous one. On an hourly chart of the EUR/USD currency pair, after a gap forms, the price returns to the liquidity void (marked in orange) to gather liquidity and then resumes its downward trend.

Indicator Settings

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

Conclusion

The vacuum block theory is a vital concept in trading that focuses on analyzing price gaps in the market. By identifying vacuum blocks and predicting market reactions to these gaps, traders can execute trades with a high probability of success, involving defined risk and significant profit potential. However, risk management and proper stop loss and take profit levels are crucial for successful trading with vacuum blocks. These measures help traders mitigate potential risks and maximize profits.