Volume-Confirmed FTR Zones [AlgoPoint]

FTR Zone Indicator — Fail To Return Zones (With Volume Confirmation)

Advanced Smart Money Zone Detection for Institutional Orderflow
The FTR Zone Indicator is a professional-grade tool designed for traders who follow Smart Money Concepts (SMC), ICT methodologies, or institutional orderflow. It automatically detects Fail To Return Zones (FTR) — high-probability supply and demand areas formed after strong displacement moves.

By combining impulse detection, base identification, and volume confirmation, this indicator highlights zones where price is most likely to react, reverse, or mitigate shortly after structure breaks.

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⭐ What Are FTR Zones?

FTR zones (Fail To Return zones) are price areas where:
1. A strong displacement / impulse candle is formed
2. That impulse originates from a small consolidation (base)
3. Price moves away aggressively
4. AND fails to return immediately to the origin area

These zones often indicate:
• Institutional orders
• Imbalance
• Hidden liquidity
• Origin of a trend leg
• High-probability mitigation points

This indicator fully automates the detection and visualization of such areas.


🔍 How the Indicator Works

1. Impulse Detection
The indicator identifies a valid impulse candle using:
• ATR-based bar range filter
• Trend-aligned candle body direction
• Optional volume confirmation
Only large, meaningful institutional candles qualify — filtering out noise.

2. Base Zone Identification
Before every impulse, the tool finds the micro-consolidation base using:
• Highest high of the last X bars
• Lowest low of the last X bars
This base becomes the potential FTR zone.

3. FTR Zone Creation
When a valid impulse is detected:
• Bullish impulse → Demand FTR zone
• Bearish impulse → Supply FTR zone
The zone is immediately drawn on the chart using box.new().

4. Zone Extension
Every zone continuously extends to the right as price evolves, allowing you to track:
• Mitigation
• Retests
• Reaction points
• Liquidity sweeps

5. Invalidation Logic
Zones automatically delete when violated:
• Demand zone invalid if close < zone low
• Supply zone invalid if close > zone high
This keeps the chart clean and helps focus only on active, high-value areas.


🎛️ Key Features
✔ Automatic FTR Zone Detection
Instantly identifies institutional origin zones based on real impulse and displacement.

✔ Volume-Based Filtering
Ensures only high-volume impulses (true institutional orders) create zones.

✔ Supply & Demand Coloring
• Bullish FTR → Demand Zone (Teal tone)
• Bearish FTR → Supply Zone (Red tone)

✔ Safe Zone Storage
Fault-tolerant logic ensures no array errors, invalid zones, or broken visuals.

✔ Auto-Extending Boxes
Real-time zone updates with precise historical mapping.

✔ Smart Invalidation
Zone is removed only when fully broken, preventing false signals.

✔ Clean, Non-Repainting Logic
Impulse detection and zone placement are confirmed only on bar close.


📈 How to Use It (Example Schenarios)
For Reversals or Continuations
• Look for price reacting or mitigating inside a zone
• Use as entry confirmation in trend continuations
• Combine with FVG, BOS/CHOCH, liquidity sweeps, or premium/discount zones

For Scalping or Intraday Trading
• High-probability countertrend entries
• Reaction-based setups at institutional footprints

For Swing Traders
• Identify weekly/daily origin zones
• Plan entries around large displacement points