FVG +Displcement/ATR/3thClosedBody [hatefbw]

Overview

This indicator is a modified version of the LuxAlgo group’s FVG indicator. It now includes three advanced optional filters that help traders identify only the strongest and most reliable Fair Value Gaps (FVGs), aligned with Smart Money Concepts (SMC) and ICT methodology.

How it works

We’ve added the following new configurable options to the indicator:

✅ Confirm Third Closed Body

When enabled, ensures the third candle (right after the gap) closes beyond the wick of the second candle.
✔️ Adds extra validation to price direction and filters out weaker FVGs.

✅ Confirm Displacement Candle

Validates that the second candle (the one forming the FVG) is a strong displacement candle. This condition checks for:

📏 Large body relative to total range (customizable %, default: 70%)

📈 High volume above 20-period moving average

🔺 Break of Structure (BOS) in the direction of the FVG

Bullish FVG: breaks above recent highs

Bearish FVG: breaks below recent lows

✅ ATR-Based Validation (optional)

Adds an additional filter where the second candle’s body or range must exceed the ATR (default: ATR 14, configurable).
✔️ Further confirms that the displacement candle has significant market movement.

Usage

All features are 100% optional and can be toggled in the settings.
Use them to filter out weak FVGs and align trades with institutional-grade setups.