FVG Theory - MTF

The indicator displays FVGs and Swings from different timeframes and marks the resistance!

Components:
Swings:
A swing is a 3-candle formation based on the Williams Fractal Indicator.
The interaction with the last swing is always displayed as a red line. This allows you to recognize the last interaction directly and draw conclusions about the further course of the price (sweep / break).
In addition, the closest fractal is always shown as a green line, which acts as a potential target.

2. FVGs:
FVGs are also known as Inbalance, it is a 3 candle formation where a gap is created in the market. The market often runs into this and reacts.


Theory:
When the weekly timeframe creates an bullish FVG, the market often reacts to it and reaches the high.

However, resistance must also be taken into account: this is the FVG that has not yet been reached and is in a higher timeframe than the entry.

For example: we have a weekly FVG as context and are trading in H4.
If an open daily FVG is against us in this way, it is marked as resistance.

The market must first react to this in H4 and break this resistance high for a good trade setup!

That is why the indicator shows the FVGs from the different timeframes, displaying the last reaction as well as the closest FVG that is still open.



The same applies if you take everything one timeframe lower: e.g. daily, H4 and H1.
You can easily set the different timeframes in the indicator.
Here we have a daily context, an H4 resistance (FVG against us) and the H1 structure!




Higher FVG are stronger!

If, for example, we follow the H4 FVG and a daily FVG forms below us, it is more likely that the market will take the larger FVG. This is always shown with the indicator!




Structure:
Overlaps are drawn when the new FVG overlaps with the structure (body or wick).



The FVG has differnt codes!

FVG codes:
↑ = bullish FVG
↓ = bearish FVG
↑↑ = breakaway gaps --> close of the third candle is above the second candle
↓↓ = breakaway gaps --> close of the third candle is below the second candle

❗ = 3rd candle of the FVG has already reacted deeply into the potential FVG!
🔪 = Sharp Turn --> FVG is taken out from the new FVG in the other direction!
🔥 = Order flow (reaction from previous FVG)
🚀 = 2CR --> reaction high/low from previous FVG is run down with FVG!


Indicator settings:
You can set the FVGs, overlaps, and swings in up to 4 different timeframes. You can switch these on and off, as well as change all colours!
The highest timeframe has the additional function of displaying the context (last fractal high and low from the current FVG).