Fair Value Gaps Indicator for MT4

The Fair Value Gaps indicator for MT4 is a price action tool that highlights bullish and bearish imbalance zones directly on the chart.

It scans for strong candles that leave a gap between surrounding price action and then marks those areas with horizontal rectangles.

This gives traders a quick way to spot zones where price may react, retrace, or continue after an impulsive move.

Why traders use Fair Value Gaps

Fair Value Gaps are used because they highlight inefficiencies in price movement where the market has moved too fast, leaving unfilled areas behind.

Traders often monitor these zones because price tends to return to them before continuing in the original direction or reversing temporarily.

This makes them useful for identifying potential pullback areas, continuation entries, or reaction zones within a trend.

Indicator Chart Setup

The chart setup below shows how the Fair Value Gaps indicator marks bullish and bearish imbalance zones directly on the main price area.

These rectangles and colored zones help traders spot unfilled gaps left behind by strong price moves and make it easier to track potential retracement areas without drawing them manually.

Core Features

• Bullish and bearish fair value gaps plotted directly on the main price chart
• Horizontal imbalance zones that highlight unfilled price areas
• Areas where price moved aggressively and left inefficiencies behind
• Visual mapping of potential pullback or reaction zones without manual marking

Best for

• Price action traders using structure and momentum analysis
• Intraday traders looking for pullback entries after strong moves
• Traders who want imbalance zones automatically identified
• Beginners who need clear visual guidance for market inefficiencies

Best Markets

• M5 to H1 timeframes for intraday trading setups
• M15 and H1 for cleaner and more selective imbalance zones
• Lower timeframes for scalping when combined with directional bias

Trading Styles

• Scalping strategies
• Intraday trading setups
• Pullback trading approaches
• Trend continuation systems

How traders use it

• Wait for price to return into a fresh bullish or bearish fair value gap
• Use bullish FVG zones as potential pullback areas in uptrends
• Use bearish FVG zones as retracement areas in downtrends
• Combine zones with structure, support and resistance, or trend filters for confirmation
• Focus on fresh imbalance zones created by strong momentum candles
• Use the indicator as a zone-mapping tool rather than a direct signal system

Indicator Settings

• Display_FVG_Option – show bullish, bearish, or both types of fair value gaps
• Minimum_FVG_Size_In_Points – filters smaller imbalances below a chosen threshold
• Bullish / Bearish Zone Color – customizes the appearance of FVG zones
• FVG Zone Length – controls how far zones extend to the right
• Look-back Candle Count – sets how many candles are scanned for FVG detection
• Look-back Line Options – displays scan range visually on the chart
• Alerts (Popup / Email / Push) – notifies when a new fair value gap is formed
• Alert Delay – adjusts how quickly alerts are triggered

Important Notes

• The indicator marks imbalance zones, not direct buy or sell signals
• Fresh fair value gaps are generally more relevant than older, untested zones
• Best results occur when FVG zones align with trend direction or key structure levels