Fair Value Gap Absorption Indicator MT5 Free Download | Forex Indicators Download - MetaTrader 5 Resources

The fair value gap absorption indicator is one of the tools in technical analysis of ICT concepts . This indicator marks the area on the Fair Value Gap (FVG) chart, displaying it as a colored box.
The fair value gap represents a price imbalance created between candlesticks, indicating unilateral dominance of supply or demand during a specific time period.
A key feature of this tool is the ability to display the mitigation percentage for each FVG area.

Fair value gap absorption indicator specification table

The specifications of the fair value gap absorption indicator are shown in the table below.

List of fair value gap absorption indicators

The areas identified by the Fair Value Gap Absorption indicator represent areas of liquidity where prices are frequently revisited.
In this tool, bullish FVGs are shown as green boxes and bearish FVGs are shown as red boxes.
Price retracements into these areas are considered important opportunities to trade in the direction of the market's dominant trend.

Buy Setup

According to the 1-hour Cardano (ADA) chart, the bullish fair value gap is marked as a green box.
As shown in the chart below, after the price retraced into this area, it absorbed the liquidity and continued its upward movement.

Sell ​​Setup

The red box drawn indicates the bearish FVG zone based on the 30-minute EUR/USD chart.
In this case, as soon as the price returns to the marked area, it reverses and starts falling.
Traders often view this retracement of the colored box as potential entry opportunities .

Setting of fair value gap absorption indicator

The fair value gap absorption indicator is set 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 visualize fair value gap areas on a chart.
In addition to marking the FVG as a colored box, it also displays the percentage of fill or relief for each area.
Traders can interpret price pullbacks to these levels as potential entry or exit opportunities depending on their strategies.