EX5 Fair Value Gap EA

How the EA Trades:

1. Market Structure Detection: The EA monitors price movements to identify shifts in market structure, such as bullish or bearish swings, using swing high and low detection with an ATR-based depth adjustment.
2. Fair Value Gap Identification: It detects FVGs, which are price gaps indicating inefficiencies (buy-side or sell-side imbalances). A bullish FVG occurs when the low of the current candle is above the high of a prior candle with a minimum gap size, and a bearish FVG occurs when the high is below the low of a prior candle.
3. Liquidity Grabs: The EA identifies liquidity grabs (rejections) by analyzing candle wicks relative to their bodies and key levels (highs and lows), indicating potential reversals when price collects buy-side or sell-side liquidity.
4. Entry Conditions:
   • Sell Entry: Triggers when a bearish liquidity grab, bearish market structure shift (MSS), and a recent bearish FVG are confirmed, with the price below a moving average (MA) for trend confirmation.
   • Buy Entry: Triggers when a bullish liquidity grab, bullish MSS, and a recent bullish FVG are confirmed, with the price above the MA.
5. Trade Management:
   • Sets stop loss (SL) and take profit (TP) levels based on user-defined pip values.
   • Limits to one position at a time (either buy or sell) using position tracking.
   • Uses a moving average and ATR for additional context on trend and volatility.
6. Institutional Order Flow: Incorporates concepts like Institutional Order Flow Entry Drill (IOFED), where trades are executed if price fills less than 50% of an FVG, and consequent encroachment, targeting the mean threshold (50% fill) of FVGs.

Key Features:

• Utilizes a 20-period Simple Moving Average (MA) and 14-period ATR for technical analysis.
• Customizable parameters include lot size, SL/TP in pips, MA periods, and minimum gap size.
• Detects breakaway and measuring FVGs to gauge trend strength and institutional order flow.
• Executes reversal trades based on shifts in market structure and FVGs.