HTF Fair Value Gap Indicator

HTF Fair Value Gap Indicator

The HTF Fair Value Gap Indicator for MT5, developed by LuxAlgo, is a cutting-edge technical tool that helps traders identify institutional imbalances—commonly known as Fair Value Gaps (FVGs)—on higher timeframes. These gaps form when price moves too quickly in one direction, leaving behind untraded zones where supply and demand have not been balanced.

By projecting these higher timeframe FVGs (HTF FVGs) onto lower charts, this indicator allows traders to visualize institutional footprints, liquidity pockets, and potential mitigation zones. Whether you trade on M5, H1, or higher charts, understanding these inefficiencies can offer a strong smart money trading advantage.

This indicator is especially valuable for traders who follow ICT (Inner Circle Trader) or supply-and-demand trading methods.

How the HTF Fair Value Gap Indicator MT5 Works

The HTF Fair Value Gap Indicator automatically detects and plots Fair Value Gaps from higher timeframes directly onto your active chart. For instance, it can project gaps from the H4 or Daily chart onto your M15 or H1 chart, helping you see where institutional activity likely occurred.

These gaps represent price inefficiencies caused by aggressive buying or selling, and they often act as magnetic zones that price may revisit to rebalance liquidity.

When price interacts with an HTF FVG zone, traders can assess the strength of reaction to determine:

Whether the market is mitigating the imbalance, or

Whether it’s breaking through, suggesting a shift in market structure.

HTF Fair Value Gap Trading Signals

The HTF Fair Value Gap Indicator for MT5 does not generate direct buy or sell signals. Instead, it provides contextual information—highlighting zones of institutional interest where price may react.

Bullish Fair Value Gaps

Indicate upward imbalances left behind during bullish impulses.

Act as potential support zones when price revisits them.

If respected, price may rebound and continue its bullish trend.

Bearish Fair Value Gaps

Represent downward imbalances formed during strong sell moves.

Often serve as resistance zones upon retest.

If price breaks through, it may imply trend reversal or liquidity sweep.

Traders can use these FVG zones to identify:

High-probability entry zones for reversal setups

Take-profit targets for continuation trades

Liquidity pools where institutional orders might be executed

For best results, combine HTF FVGs with order block analysis, breaker blocks, or internal structure mapping for precise trade entries.

Benefits of the HTF Fair Value Gap Indicator MT5

Automatic higher timeframe projection – View institutional gaps from any timeframe on your current chart.

Clear visual layout – Cleanly marked FVG zones with color-coded bullish/bearish shading.

Smart Money compatibility – Perfect for ICT, Wyckoff, or supply-and-demand traders.

Improved entry accuracy – Aligns trades with institutional liquidity points.

Works across markets – Effective for Forex, indices, crypto, and commodities.

By using this indicator, traders can trade in sync with institutional flow rather than reacting to retail signals.

How to Use the HTF Fair Value Gap Indicator

Attach the indicator to your MT5 chart.

Select the higher timeframe (e.g., H4 or Daily) you want to project.

Observe the automatically plotted Fair Value Gaps on your current chart.

Use these zones as key decision points:

For potential entry triggers after retests

To set take-profit levels or define risk zones

Combine with other LuxAlgo tools or market structure analysis for confirmation.

This process gives traders a multi-timeframe perspective on where smart money may be accumulating or distributing.

Conclusion

The HTF Fair Value Gap Indicator for MT5 by LuxAlgo transforms how traders view market inefficiencies by automatically plotting higher timeframe imbalances on any chart. These institutional Fair Value Gaps provide a powerful roadmap to understand where liquidity is concentrated and where price is likely to react.

For traders applying smart money concepts or supply-demand trading, this indicator is a game changer. It brings precision, automation, and clarity to your technical analysis.

You can download the HTF Fair Value Gap Indicator MT5 for free from IndicatorForest.com and take your market structure trading to the next level.