Vacuum Block (ICT) Indicator Download for MT5 - Free | Forex Indicator Download - MetaTrader 5 Resources

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

These areas often arise in response to major economic or political events, and prices revert to these areas due to inactive orders and a lack of necessary liquidity . Vacuum blocks are classified into bullish and bearish types and marked in orange.

Indicator Table

Indicator overview

A vacuum block represents a price gap formed due to the price difference of the previous day, closing price and the new day's opening price , creating a liquidity void . This concept means that no trading will occur within this price range, resulting in no room for liquidity. Traders usually expect the price to recover to fill the gap and then move towards higher or lower levels.

Indicators are in an upward trend

On a 15-minute chart of the AUD/CHF currency pair, after a price gap formation activates, price returns to this area , orders and absorbs liquidity . This price action indicates that the market tends to fill gaps and continue the previous trend. In these situations, traders seek to buy confirmations with shorter entry times.

Indicators are in a downward trend

A bearish vacuum block forms when the opening price of the new candlestick is lower than the closing price of the previous one. On an hourly chart of the EUR/USD pair, after a gap forms, price returns to a liquidity gap (marked in orange) to collect liquidity before resuming the downtrend.

Indicator Settings

• Color themes for charts and objects : background color for charts;
• Move Vacuum Ends : Number of vacuum block areas to display, default is 5.

Conclusion

The vacuum block theory is an important concept in trading that focuses on analyzing price gaps in the market. By identifying vacuum blocks and anticipating the market's reaction to these gaps, traders can execute trades with a high probability of success, involving clear risk and significant profit potential.

However, risk management and proper stop loss and take profit levels are crucial for successful trading on vacuum blocks. These measures help traders reduce potential risks and maximize profits.