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MetaTrader 5

MT5 Fair Value Gap (FVG) Indicator

MT5 Fair Value Gap (FVG) Indicator is a price imbalance analysis tool for MetaTrader 5 that automatically detects bullish and bearish Fair Value Gaps based on standard FVG formation rules. It includes advanced filtering, configurable mitigation methods, active / mitigated / expired zone states, Shrink Mode visualization, touch alerts, historical zone tracking, and flexible display controls for structured price action analysis.

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Overview

Fair Value Gap Concept Explained

A Fair Value Gap (FVG) refers to a price imbalance where the market moves aggressively enough to leave a gap between candles, creating an area with limited two-sided trading. In practical terms, this often reflects fast directional movement where buy and sell orders were not fully matched before price continued higher or lower.

The concept is widely used in ICT (Inner Circle Trader) and Smart Money Concepts (SMC) methodologies as a way to identify areas where price may later revisit in order to rebalance inefficient movement.

Bullish Fair Value Gaps form during strong upward displacement, while bearish Fair Value Gaps form during strong downward displacement. Once created, these zones are often monitored as future reaction areas when price retraces back into the imbalance.

Not every gap has equal relevance. Size, duration, market context, and how price interacts with the zone later all matter. Some gaps are revisited quickly and filled, while others remain open for extended periods and continue to act as reference levels.

The MT5 Fair Value Gap Indicator automates this process by detecting FVG zones, tracking whether they remain active, become mitigated, or expire over time, and visualizing these states directly on the chart for structured analysis.

Capabilities

Fair Value Gap (FVG) Indicator — Key Features

FVG Detection & Filtering

The indicator automatically detects both Bullish and Bearish Fair Value Gaps and plots them directly on the chart as structured imbalance zones.

Detection can be refined through directional filters, allowing traders to display only bullish gaps, only bearish gaps, or both. This is useful when aligning chart analysis with broader directional bias.

Minimum gap size filters are available in ticks, points, or percentage, helping remove minor inefficiencies that may be less relevant in active market conditions.

A configurable history bars limit controls how much historical data is scanned.

FVG Min Length (bars) defines the minimum horizontal lifespan of a newly created zone. This helps prevent gaps from appearing and disappearing too quickly, giving traders enough chart time to evaluate whether price reacts, returns, or leaves the imbalance untouched.

This keeps attention on imbalances that meet your size, direction, and visibility rules.

Zone Lifecycle & State Management

Not every Fair Value Gap remains relevant indefinitely. This indicator tracks the full lifecycle of each zone after creation.

New gaps begin as Active zones. If price later satisfies the selected mitigation condition, the zone changes to Mitigated status. If the gap remains unfilled beyond the selected lifetime, it becomes Expired.

Zone duration can be measured in bars or minutes, allowing the logic to adapt to different chart timeframes and trading styles.

A maximum display limit can also be applied to control how many zones remain visible at once. Older zones remain available for review, while display limits prevent the chart from becoming cluttered.

Mitigation Logic

How a Fair Value Gap is considered filled can significantly change chart interpretation.

This indicator includes multiple mitigation models so zone behavior can match different analytical approaches.

Full Mitigation requires the gap to be completely filled before the zone changes state.

Partial Mitigation recognizes the first qualifying touch into the imbalance area, allowing faster status updates when early interaction is enough.

Threshold Mitigation requires price to fill a user-defined percentage of the zone depth before mitigation is confirmed. Threshold values can be adjusted to require shallow interaction or deeper rebalancing depending on preference.

Mitigation can also be validated using High / Low extremes or Close prices. Close mode is stricter. High / Low mode reacts faster.

Zone Visualization & Shrink Mode

Fair Value Gaps are displayed directly on the chart using customizable bullish and bearish zone colors with adjustable opacity.

When a zone becomes mitigated or expired, its visual state can automatically change to separate active zones from historical context. Mitigated zones can remain visible in one color, while expired zones can be preserved in another.

The indicator also includes Shrink Mode, where the zone contracts visually as price partially fills the imbalance. This makes ongoing mitigation easier to read at a glance.

Display filters can also show only active zones, only inactive zones, only mitigated zones, or only expired zones depending on chart workflow.

Alerts, Signals & Markers

The indicator includes a flexible notification system for key Fair Value Gap events.

Available alerts include:

  • new FVG detected
  • zone touch / entry
  • mitigation completed

Alerts can be delivered as popup alerts, sound alerts, or email notifications.

Bullish and bearish touch signals are generated when price re-enters an active zone before mitigation has occurred.

Optional chart markers can identify detection, mitigation, and expiration events, while labels can be added directly to zones for faster recognition.

Run it quietly, or use it as an active FVG monitoring tool.

How to Use

How to Interpret and Use the Fair Value Gap (FVG) Indicator

Reading Active Fair Value Gaps

Newly detected zones begin as Active Fair Value Gaps. These represent imbalances that have not yet met the selected mitigation condition.

Bullish zones are typically watched when price trades above the gap and later retraces downward into the area. Bearish zones are commonly monitored when price trades below the gap and later rallies back into the zone.

Many traders focus first on active zones because they still represent unresolved price imbalance.

Understanding Mitigated and Expired Zones

When price satisfies the selected mitigation method, the zone changes to Mitigated status and can remain visible as historical context.

If price never fills the zone within the selected lifetime, it becomes Expired. This helps separate older untouched gaps from currently relevant zones.

Keeping mitigated and expired zones on the chart can help review how price interacted with previous imbalance areas over time.

Using Touch Events and Return to Zone Logic

A touch event occurs when price re-enters an active Fair Value Gap before mitigation has occurred.

For bullish zones, this typically means price moved higher after creation and later retraced back into the gap. For bearish zones, price moved lower first and later rallied into the zone.

Some traders monitor these return-to-zone events because they represent renewed interaction with an unresolved imbalance.

Settings

Indicator Settings & Parameters

Full parameter reference, grouped by configuration area.

ParameterDescription
FVG Settings
History Bars To ProcessDefines how many historical bars are scanned for Fair Value Gap detection. Higher values load more historical zones, while lower values improve chart performance.
Allowed Direction

Controls which gap direction is displayed:

  • Both
  • Bullish Only
  • Bearish Only
Show FVG Type

Controls which zone states remain visible:

  • All Zones
  • Active Only
  • Inactive (Mitigated + Expired)
  • Mitigated Only
  • Expired Only
FVG Display Type

Controls how zones are drawn:

  • Default
  • Shrink Mode
Mitigation Method

Defines when a Fair Value Gap is considered mitigated:

  • Full Fill
  • Partial Touch
  • Threshold Fill
Threshold Value (%)Sets the percentage depth required when Threshold mitigation is selected.
Mitigated Price Type

Specifies which price confirms mitigation:

  • High / Low
  • Close
Gap Size Mode

Selects how minimum zone size is measured:

  • Ticks
  • Points
  • Percentage
Minimum Gap SizeDefines the minimum Fair Value Gap size required for detection based on the selected measurement mode.
FVG Min Length (bars)Defines the minimum horizontal lifespan of a newly created zone.
Max FVG DurationEnables expiration logic for zones that remain unfilled.
FVG Duration Type

Defines how lifetime is measured:

  • Bars
  • Minutes
FVG Duration ValueSets the maximum allowed lifetime before the zone becomes expired.
Enable FVG Display LimitLimits how many zones remain visible at the same time.
Max Number of FVGs to DisplayDefines the maximum visible zone count.
FVG Alerts
FVG Detected AlertTriggers an alert when a new zone is created.
FVG Entry AlertTriggers an alert when price enters an active zone.
FVG Mitigated AlertTriggers an alert when a zone changes to mitigated status.
FVG Signals
FVG Touched SignalDisplays a bullish or bearish signal when price re-enters an active zone before mitigation.
FVG Zones & States
Bullish Zone Color / OpacityControls color and transparency of active bullish zones. Strong contrast can improve visibility during fast market conditions.
Bearish Zone Color / OpacityControls color and transparency of active bearish zones. Use distinct colors to separate directional zones quickly.
Mitigated Zone Color / OpacityControls the visual state of mitigated zones so completed imbalances remain visible without competing with active zones.
Expired Zone Color / OpacityControls how expired zones appear when preserved for historical context.
FVG Labels & Markers
FVG Detected MarkerDisplays a marker when a new zone is formed.
FVG Mitigated MarkerDisplays a marker when mitigation occurs.
FVG Expiration MarkerDisplays a marker when a zone expires.
Show FVG LabelDisplays text labels on zones.
FVG Label FontControls font size for labels.
FVG Label ColorControls label color.
Alerts
Enable Pop Up AlertDisplays an on-screen popup when a selected Fair Value Gap event occurs.
Enable Sound AlertPlays a sound notification when an alert is triggered.
Alert Sound FileSelects the sound file used for audio alerts.
Enable Email AlertSends an email notification when supported alert events occur. Requires MetaTrader email settings to be configured.
FAQ

Frequently Asked Questions

FVG Basics

A Fair Value Gap (FVG) is a price imbalance created when the market moves aggressively enough to leave an area with limited two-sided trading. The concept is widely used in ICT and Smart Money Concepts (SMC) methodologies.

No. Once a Fair Value Gap is detected, the zone is plotted based on completed candle data and is not moved retroactively to create false historical signals.

Zone status may later update to mitigated or expired as new price data develops, but the original imbalance location does not repaint.

FVG Touched Signals are also fixed — once confirmed, they remain on the chart and are not removed or repositioned as new bars develop.

This indicator combines Fair Value Gap detection with zone management tools, including:

  • Active / Mitigated / Expired state tracking
  • Full, Partial, and Threshold mitigation methods
  • Shrink Mode visualization
  • Historical zone preservation
  • Direction filters
  • Touch alerts and return-to-zone signals

It is designed as a full FVG workflow tool rather than a simple box-drawing indicator.

The indicator can be used on any MetaTrader 5 market with chart data, including:

  • Forex
  • Gold (XAUUSD)
  • Indices
  • CFDs
  • Commodities
  • Crypto (if supported by broker)

Fair Value Gap analysis is most relevant where price movement creates clear displacement and retracement behavior.

Zones & Mitigation

  • Active = zone remains open and unresolved
  • Mitigated = price has satisfied the selected fill condition
  • Expired = zone remained unfilled beyond the selected lifetime

This helps separate current zones from historical context.

Shrink Mode reduces the visible size of a zone as price partially fills the imbalance.

This makes ongoing mitigation easier to track visually in real time.

  • Full = complete fill required
  • Partial = first qualifying touch
  • Threshold = selected percentage of the zone depth must be filled

Different methods suit different analytical styles.

Yes. Historical zones can remain displayed using separate visual states for mitigated and expired gaps.

This helps review prior price reactions and market structure context.

Filters & Alerts

Yes. The indicator can generate alerts when price re-enters an active zone, when a new zone is created, or when mitigation occurs.

Popup, sound, and email notifications are supported.

Yes. Direction filters allow displaying:

  • Both directions
  • Bullish only
  • Bearish only

This is useful when aligning with broader directional bias.

Requirements & Installation

System Requirements & Installation

What you need to run the indicator, how to download and install it in MetaTrader 5, and how the license works.

System Requirements

Platform
MetaTrader 5 (Desktop)
Operating system
Windows 10 or Windows 11
Instruments
Forex pairs, metals, indices, CFDs and other symbols available from your broker in MetaTrader 5
Data
Your broker’s price feed in MetaTrader 5

Not available on MetaTrader 5 Web or Mobile. Custom indicators run in the MetaTrader 5 desktop terminal only.

License Terms

Lifetime License
This indicator only, 1 live and 1 demo account, one-time payment, free updates included.
All-Access Subscription
All indicators and trade copiers, billed monthly, cancel anytime, updates included while the subscription is active.
Free trial
5 days on the subscription plan. If not cancelled, the subscription starts automatically.
License binding
Linked to your email and to your MetaTrader 5 trading accounts: one live account and one demo account.
Computers
Not restricted. The license is linked to your trading accounts, not to a specific computer.

Installation

  1. Get access

    Start the free trial, subscribe, or buy a lifetime license on this page.

  2. Download

    The indicator is not sent by email. Open (top right of this page) and enter the email you used for your trial, subscription or purchase. The indicator file (.ex5) downloads to your computer.

  3. Copy to the MetaTrader 5 data folder

    In MetaTrader 5, go to File → Open Data Folder, open MQL5 → Indicators and copy the downloaded .ex5 file there.

  4. Add to a chart

    Restart MetaTrader 5 or right-click Indicators in the Navigator window and select Refresh. Then drag the indicator from the Navigator onto a chart.

  5. Activate the license

    In the indicator inputs, enter the same email. On first activation, the license is linked to that email and to the trading account the terminal is logged into.

    If MetaTrader 5 asks for additional permissions when the indicator is attached, such as DLL imports or WebRequest access, allow them in the indicator’s Common tab or under Tools → Options → Expert Advisors.

Updating: When a new version is released, download it again through and replace the existing .ex5 file in the same folder.

Installation questions? Contact support, Monday to Friday.

Developed by Nordman Algorithms

Developed, tested, documented, and maintained by our algorithmic trading software development team.

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