The Vacuum Block (ICT) Indicator for MetaTrader 5 is a sophisticated tool designed to identify liquidity voids — price gaps resulting from significant market events such as economic announcements or geopolitical developments.
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These gaps often indicate areas where the market may return to fill unexecuted orders, providing traders with potential entry points aligned with the prevailing trend.
Indicator Overview
Functionality
The Vacuum Block Indicator detects areas where price gaps occur due to rapid market movements, often triggered by high-impact news. These gaps, or “vacuum blocks,” are categorized as
- Bullish Vacuum Blocks: Indicate potential upward price movements.
- Bearish Vacuum Blocks: Suggest possible downward price trends.MQL5
These zones are visually represented in orange on the chart, allowing traders to easily identify and analyze them.
✨Practical Application
Uptrend Scenario
In a 15-minute chart of the AUD/CHF currency pair, a bullish vacuum block forms following a significant price gap. The price retraces to this zone, activating pending orders and absorbing liquidity before continuing its upward trend. Traders can look for buy confirmations on lower time frames when the price revisits these areas.
✨Downtrend Scenario
On an hourly chart of the EUR/USD currency pair, a bearish vacuum block is identified when a new candlestick opens lower than the previous one’s close. The price returns to this liquidity void, gathers liquidity, and then resumes its downward trajectory. This behavior highlights the market’s tendency to fill gaps before continuing in the dominant trend direction.
Indicator Settings
Conclusion
The Vacuum Block Indicator is an essential tool for traders employing the ICT methodology, focusing on liquidity and smart money concepts.
By identifying and analyzing vacuum blocks, traders can anticipate potential price movements and make informed trading decisions.
However, it’s crucial to implement proper risk management strategies, including setting appropriate stop-loss and take-profit levels, to mitigate potential risks and maximize profitability.
❓ What is a vacuum block?
A vacuum block is a price gap caused by sudden market movement, indicating a liquidity void.
❓How does this indicator help traders?
It identifies key zones where price may return to fill unexecuted orders, helping with entry/exit decisions.
❓ Is the indicator suitable for all time frames?
Yes, it works across multiple time frames.
❓What trading styles is it best for?
Primarily day trading and smart money concepts.
Learn more Vacuum Block (ICT) Indicator for MT5 — Free Download
