4H FVG + 15m CISD Strategy: Multi-Timeframe Precision Model
Overview
The 4H FVG + 15m CISD Strategy is an advanced multi-timeframe trading model that combines higher-timeframe structure analysis with lower-timeframe execution precision. This approach identifies high-probability reversal and continuation zones using 4-hour Fair Value Gaps (FVGs) while confirming entries with 15-minute Change in State of Delivery (CISD) signals.
This strategy leverages institutional order flow concepts to capture smart money movements. By filtering setups through 4H FVGs and executing on 15m CISD confirmations, the model ensures alignment with larger timeframe structure while maintaining precise, low-risk entry points.
Key Philosophy: Trade the higher timeframe bias (4H FVGs) with lower timeframe confirmation (15m CISD) to capture institutional moves with retail-level precision.
Strategy Components
1. 4-Hour Fair Value Gaps (FVGs)
A Fair Value Gap is created when price moves so aggressively that it leaves an imbalance (gap) between candles. Specifically:
- Bullish FVG: Occurs when the low of candle 3 is higher than the high of candle 1, leaving a gap after an aggressive upward move
- Bearish FVG: Occurs when the high of candle 3 is lower than the low of candle 1, leaving a gap after an aggressive downward move
These gaps represent inefficiencies that price often returns to fill. The 4H timeframe provides macro-level zones where institutional orders are likely to be placed.
2. Change in State of Delivery (CISD)
CISD is a liquidity-based reversal signal that identifies when smart money has trapped retail traders and is ready to reverse. Two detection methods are used:
- Classic Mode: Detects consecutive candle sequences and confirms reversal when price breaks the sequence open in the opposite direction
- Liquidity Sweep Mode: Tracks Buy-Side Liquidity (BSL) and Sell-Side Liquidity (SSL) sweeps followed by displacement confirmation
The 15-minute timeframe provides precise entry timing after the 4H FVG has been identified.
Why Focus on the Last 3 FVGs?
Recency Equals Relevancy
The most recent FVGs represent the current market structure and fresh institutional imbalances. Older FVGs lose significance as market dynamics evolve. By focusing on only the last 3 FVGs, I ensure:
- Higher probability reactions: Fresh FVGs that haven't been tested yet typically produce the strongest price reactions
- Reduced noise: Avoiding alerts on outdated zones that are no longer relevant to current price action
- Active structure focus: The last 3 FVGs define the immediate trading range and represent where institutions are actively watching
- Better risk management: Trading current market conditions rather than chasing old levels that may no longer hold
Strategic Advantage: When price taps into one of the 3 most recent 4H FVGs and a CISD signal forms on 15m, it indicates fresh institutional interest aligning with current market structure, creating the highest probability setup.
Strategy Logic & Execution
Setup Requirements
- Identify 4H FVGs: Monitor the chart for the 3 most recent 4-hour Fair Value Gaps (both bullish and bearish)
- Wait for Price to Tap FVG: Price must enter one of these 3 FVG zones on the 15 minute chart
- CISD Confirmation: Look for a CISD signal on 15m indicating a change in delivery/momentum
- Entry Execution: Enter trade when both conditions align:
- Price is inside a recent 4H FVG zone
- 15m CISD signal confirms the directional bias
Trade Management
- Entry: Immediate execution after CISD confirmation within FVG zone
- Stop Loss: Placed beyond the FVG boundary or recent swing structure
- Target: Opposite liquidity level, next FVG, or major support/resistance
- Risk/Reward: Minimum 1:2, often achieving 1:3 or higher
Key Advantages
- Multi-timeframe confluence: Combines institutional zones (4H) with precise timing (15m)
- High probability setups: Only trades when both higher and lower timeframe structures align
- Reduced false signals: CISD confirmation filters out premature entries
- Scalable approach: Works across all liquid markets (Forex, Indices, Crypto)
- Automated alerts: Real-time notifications when price enters the 3 most recent FVG zones
- Clear rules: Objective entry and exit criteria remove emotional decision-making
Technical Implementation
This strategy is coded in Pine Script v5 and features:
- Automatic 4H FVG detection on any timeframe (including 15m charts)
- Dual CISD detection modes (Classic and Liquidity Sweep)
- Real-time FVG fill detection with visual feedback
- Customizable alert system for the 3 most recent FVGs
- Dynamic visual display with info table tracking active FVGs and CISD trend
- Full parameter customization for swing strength, minimum duration, and validity periods
Alert Configuration
The indicator provides multiple alert options:
- "Recent FVG Tapped": Fires when price enters one of the 3 most recent FVG zones (primary trading alert)
- "FVG Tapped": Alerts on any FVG interaction (for broader market structure awareness)
- "Bullish/Bearish FVG Formed": Notification when new 4H FVGs are created
Alerts are configured to trigger once per 15-minute bar, ensuring timely notifications without spam while allowing real-time execution opportunity.
Strategic Philosophy
"Structure over noise. Confirmation over anticipation."
This strategy embodies the principle that successful trading requires patience for high-quality setups. By waiting for 4H structure to align with 15m confirmation, I trade with institutional flow rather than against it. The focus on only the 3 most recent FVGs ensures I'm trading the current narrative, not yesterday's story.
Ongoing Development
This model represents the core entry logic of my trading system. I am actively working to enhance it with:
- Integration with higher-timeframe bias filters (Daily/Weekly market structure)
- VWAP and moving average confluence for additional confirmation
- Dynamic position sizing based on FVG quality and CISD strength
- Advanced exit strategies with partial profit-taking and trailing stops
- Backtesting framework for systematic performance evaluation
Technology Stack
- Platform: TradingView
- Language: Pine Script v5
- Timeframes: 4H structure analysis, 15m execution
- Features: Real-time alerts, visual FVG tracking, CISD detection with liquidity sweep logic
- Markets: Applicable to Forex, Indices, and Cryptocurrency pairs
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