Fair Value Gap Absorption Indicator MT4 Free Download | Gold EA Download - MetaTrader 4 Resources

The fair value gap absorption indicator is designed based on ICT concepts on the MetaTrader 4 platform. This tool highlights the area on the Fair Value Gap (FVG) chart using colored boxes.
FVG is the gap that forms between candlesticks and represents a temporary imbalance between supply and demand. In addition to showing these areas, the indicator also shows the degree of price penetration and mitigation percentage.

Fair value gap absorption indicator specification table

The following table sets forth the specifications for the fair value gap absorption metric.

List of fair value gap absorption indicators

The areas plotted by the Fair Value Gap Absorption indicator represent areas of liquidity where prices tend to revert. The tool displays bullish FVGs with green boxes and bearish FVGs with red boxes.
When price moves back into these areas, it creates potential entry opportunities in the direction of the main market trend.

Buy Setup

Based on the XAU/USD (Gold vs. US Dollar) chart on the 1 hour time frame, Bullish FVG is plotted as a green box on the chart.
As shown, the price moved back into the FVG zone, absorbed liquidity , and continued its upward movement.

Sell ​​Setup

The red box drawn represents the FVG bearish zone based on the 1-hour Ethereum (ETH) chart. As shown below, when price revisits the identified area, it reverses and begins to fall.
Traders can interpret price retracements in these colored boxes as potential trading setups .

Setting of fair value gap absorption indicator

The adjustable parameters in the fair value gap absorption indicator are as follows:

• Fair value gap width filter: Fair value gap width filter
• Bearish Fair Value Gap Color: Color of the Bearish Fair Value Gap area
• Bullish Fair Value Gap Color: The color of the bullish fair value gap area
• Display percent relief: Percentage of relief within the FVG zone
• Show historical fair value gap: Historical fair value gap area on chart

Conclusion

The Fair Value Gap Absorption indicator is designed to display fair value gap areas on a chart. In addition to marking the FVGs with colored boxes, it also shows how much of these areas are filled or absorbed, expressed as a percentage.
Depending on their trading strategy , traders can view price pullbacks into these areas as potential trading opportunities.