Inverse Fair Value Gap

What is an Inverse Fair Value Gap?

The Inverse Fair Value Gap highlights areas where an original imbalance flips in purpose after price returns to it. Instead of acting as a normal FVG that simply gets filled, an inversion FVG becomes a new point of support or resistance once price trades through and then comes back to it. This shift often marks a change in intention and shows where the market is likely to react again with strength.

The indicator automatically detects these inverted gaps and labels them clearly, helping traders see where a previous inefficiency transforms into a valid reaction zone. These levels often align with liquidity grabs, displacement, or structural changes, making them useful for timing entries and confirming bias.

By tracking both standard FVGs and inversion FVGs, traders gain a more complete view of how price respects or repurposes imbalance areas. This leads to cleaner trade setups and a stronger understanding of how the market reuses old inefficiencies as new decision points.

How to Configure Inverse Fair Value Gap Indicator?

Show Labels - Toggle to show/hide labels.

Colors - Set of colors for Bullish and Bearish iFVGs

• Bullish iFVG - Applied to bullish iFVGs that are active.
• Bearish iFVG - Applied to bearish iFVGs that are active.

Mitigation

• Mitigation - Toggle to show/hide the mitigation feature.
• Mitigation Type - Choose how strictly the indicator confirms that a gap has been mitigated (filled).
  • Close Inside - Gap is mitigated when candle closes inside the zone.
  • Wick Inside - Gap is mitigated when the wick (high/low) touches inside the zone.
  • Close > 50% - Gap is mitigated when the candle closes past the consequent encroachment level.
  • Wick > 50% - Gap is mitigated when the wick (high/low) crosses the consequent encroachment level.
  • Close Outside -Gap is mitigated only when the close happens fully outside the opposite side.
  • Wick Outside - Gap is mitigated only when the wick crosses (high/low) outside the opposite side.
• Mitigated Color - Applied to zones that have been mitigated/filled.

Consequent Encroachment

• CE (Mid-point) - Toggle to show/hide the Consequent Encroachment line.
• CE Color - Set the color for the consequent encroachment midpoint line.

Max iFVG Displayed - Controls how many iFVGs are to be displayed on screen.

Distance from LTP - Set how far the gap boxes extend into the future from the current candle.