Overview

The Dynamic FVG & Trap Zones indicator is a multi-layer market structure tool designed to detect Fair Value Gaps (FVGs) and trap zones in real-time, while filtering signals through per-signal cooldowns for improved quality.
It is built for traders who rely on order flow imbalances, liquidity sweeps, and volume-based trap detection to spot high-probability price reactions.

Unlike basic FVG indicators, this tool dynamically manages recent vs. historical FVGs, detects trap formations within active FVGs, and applies independent cooldown timers for each signal type—ensuring one setup doesn’t suppress another.

Key Components & How They Work

1. Fair Value Gap Detection
• Bullish FVG: Detected when price leaves a gap between current low and high from two bars back, signaling potential bullish imbalance.
• Bearish FVG: Detected when price leaves a gap between current high and low from two bars back, signaling potential bearish imbalance.
• All FVG zones are visually marked as boxes that extend into the future until price interacts with them.

2. Trap Zone Identification
• A Trap occurs when price re-enters an existing FVG but fails to follow through in the breakout direction.
• The trap type is visually identified by color-coded labels—green for bullish context and red for bearish context.
• Optional wick-based trap logic ensures false breakouts are only flagged when price sweeps liquidity beyond the zone before reversing.

3. Volume & Liquidity Filters
• Trades can be filtered using average volume multipliers to validate or reject setups.
• Trap volume thresholds detect when market participants are absorbed at low volume, improving reliability in choppy markets.

4. Per-Signal Cooldown Logic
• Each signal type (Bull FVG, Bear FVG, Trap) has its own cooldown period.
• Prevents over-plotting without missing unrelated setups that happen within the same cooldown window.

Inputs & Customization
• Max FVG Lookback: Controls how long untested FVGs remain visible.
• Volume Filters: Enable/disable average volume and trap volume thresholds.
• Wick-Based Traps: Toggle between wick-sensitive and close-based detection.
• Trap Exclusivity: Allow traps to trigger on any valid FVG or restrict to most recent zones.
• Cooldown Bars: Set the number of bars before the same signal type can trigger again.
• Shape Cooldown Toggle: Choose whether plotted shapes also obey cooldowns or show all raw events.

How to Use
1. Trend Continuation:
• Bullish FVGs with no trap detection can signal continuation zones where price may bounce.
• Bearish FVGs without traps can act as resistance zones for potential reversals.
2. Trap Entries:
• A green trap inside a bullish context often signals a bullish reversal.
• A red trap inside a bearish context often signals a bearish reversal.
3. Volume Confirmation:
• Higher volume in breakout direction + low trap volume in pullback direction increases setup quality.

Why This Indicator is Unique
• Integrates dynamic market structure (FVGs) with trap detection that adapts to price behavior.
• Uses per-signal cooldowns to avoid over-filtering unrelated setups—preserving opportunities.
• Combines volume analytics, wick analysis, and trap logic in one framework.
• Designed for scalping, intraday, and swing trading on any market or timeframe.

Disclaimer:
This script is for educational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always confirm signals with your own analysis and risk management.