This Indicator is an important part of the Smart Money Concepts (SMC) system.
It looks for and shows on the chart a modern pattern – the Fair Value Gap (FVG).
This pattern is a three candlestick imbalance formation based on the discovery of a mismatch between supply and demand. This happens when the price moves quickly in one direction without encountering resistance. The result is a “gap”, which can be filled in later.
The indicator finds this pattern using the updated methodology and marks the location of the pattern with an arrow. Pattern detection can be accompanied by a signal.
|NinjaTrader 8||MetaTrader 4, 5|
|Input parameters NinjaTrader 8||Input parameters MetaTrader 4, 5|
2 main ways to use the indicator:
- When trading imbalances and fair value gaps.
- Using the found patterns as support/resistance lines.
The indicator is not difficult to set up and has only three parameters. The third parameter disables/enables the pattern detection notification. For the MetaTrader platform, this parameter sets 3 types of notifications – sound, message to mail, message to a mobile device.. The second parameter is responsible for the location of the indicator arrows, and the first one is for the pattern detection accuracy:
- Shadow Threshold, %: Threshold percentage used to filter IFVG with similar shadows of adjacent candles.
The indicator, despite its apparent simplicity, will be necessary for any trader who wants to master the modern Smart Money Concepts (SMC) methodology. Its skillful use will have a positive impact on understanding the market and the accuracy of entering positions.
|Name||MetaTrader 4||MetaTrader 5||NinjaTrader 8|
|The Scalping Channel||$39||$39||$39|