10/11/2023 |
ICT’s New Secret Weapon: Proximity Indicators
Hello, traders, and welcome to another software update from your friends here at TrendSpider! In this update, we’re happy to release a new suite of indicators designed with ICT, The Strat, and price action traders in mind: The all-new Fair Value Gap Proximity, Order Block Proximity, and Gap Proximity indicators. Details after the jump!
The ability to easily discover, alert, and strategy test Fair Value Gap, Order Block, and price gap trading setups has long been requested by many of our users, and we’re pleased to announce that this functionality is now possible with the addition of our new suite of Proximity indicators.
Adding Proximity Indicators To Your Chart
Proximity indicators can be added to your chart either via the ‘Indicators’ button or simply by typing ‘Proximity’ into your Assistant search bar and selecting the indicators you’d like to add.
Note the three indicators listed at the top of the above image; ‘Fair Value Gap Proximity’, ‘Gap Proximity’, and ‘Order Block Proximity’. When added to your chart, all three indicators will display as lower indicators consisting of the same set of features; A line, a horizontal dashed zero line, a blue cloud, a black dot, and, in the case of the ‘Gap’ and ‘Fair Value Gap Proximity’ options, red and green vertical bars. Let’s dig into what each item represents.
Dashed Zero Line: Represents the nearest gap or order block.
Red and Green Vertical Bars: Represent when the price has touched a gap or order block either from above or below.
Blue ‘Cloud’: Represents an ATR value by default, but %, constant, or standard deviation values can also be selected. If the white line is within the cloud, then the price is closer to the gap or order block than the current ATR or selected value, and vice versa.
Black Dot: Marks the start of a new fair value gap, gap, or order block.
If the price is above the nearest gap or order block, the white line will be above the dashed zero line. If the price is below the nearest gap or order block, the white line will be below the dashed zero line.
In the case of multiple gaps or order blocks appearing on the chart both above and below the price, the white line will always denote the distance to the nearest one. With that in mind, it is possible for the white line to instantly jump from above to below or below to above the zero line as the location of the nearest gap or order block changes.
When the price touches a gap from below but does not trade through it, a green vertical bar forms. When the price touches a gap from above but does not trade through it, a red vertical bar will appear. If the price trades through a gap without first touching it, no vertical bar will appear, and the value of the white line will be equal to zero.
Using Proximity Indicators Across TrendSpider
As mentioned above, these new indicators open up a slew of possibilities for utilizing Fair Value Gaps, Order Blocks, and price gap conditions within your scans, strategies, and alerts.
In order to utilize conditions related to these proximity indicators, traders can try typing things like ‘fvg’ or ‘order block’ into the assistant. All of the pre-made scripts that are currently available will populate.
If you would prefer to create your own scripts, simply click on the ‘Visual Scripts’ button in your top toolbar and proceed to define your conditions. For each proximity type, you can define conditions related to the Line, Bottom, Top, Gap Start, or Zero value.
Zero: Represents the nearest gap or order block.
Top: Refers to the top of the ATR cloud.
Bottom: Refers to the bottom of the ATR cloud.
Gap Start: Refers to the location of a new gap having formed.
Examples
Price At Gap or Order Block
One of the most common things traders will look for as it relates to Fair Value Gaps, Order Blocks, or price gaps is the price arriving at them. In order to script this condition, simply define the ‘Line’ value as being equal to a constant value of ‘0’.
The script in the image below looks for any instance in which the price has arrived at a Fair Value Gap, Order Block, or price gap.
Download the free ‘Price At Gap Or Order Block’ scanner:
Price Nearing Gap or Order Block
If the price is currently far away from the nearest gap or order block, the line will be outside of the ATR bands. As the price nears a gap or order block, it will cross from outside the ATR band to inside the ATR band. This action can be defined for both instances of price crossing down on the band and price crossing up on the band.
The script in the image below looks for any instance in which the price is getting closer to the Fair Value Gap, either from above or below it.
Download the free ‘FVG ATR Band Cross (Any)’ scanner:
New Gap or Order Block Formed Recently
Another instance many traders might be on the hunt for is new gaps or order blocks forming right now or having recently formed.
In the below script, we’re looking for any gap or order block having formed within the past 5 candles.
Download the free ‘Recent Gap or Order Block’ scanner:
If you’d like to know more about Fair Value Gaps and Order Blocks, take a moment to watch this Technical Analysis Series video!
As always, we hope you find this new indicator helpful and, if you have any questions, feel free to reach out to us via the ‘Contact Us’ button in the bottom right-hand corner of your chart view. Interested in trying TrendSpider? Start a free 7-day trial using the link below!
