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Inversion Fair Value Gap (iFVG)

The Simple Version

An Inversion FVG is a Fair Value Gap that failed. Price closed through the gap instead of bouncing from it. Now the gap works in the opposite direction.

Think of it like a Breaker Block, but for FVGs instead of Order Blocks.

What It Looks Like

Find an FVG that was acting as support or resistance. Now look for price to close completely through it with a full candle body. That broken FVG is now an Inversion FVG.

Bullish iFVG: A bearish FVG that got broken. Now it acts as support. Bearish iFVG: A bullish FVG that got broken. Now it acts as resistance.

Bullish iFVG - broken bearish FVG now acting as support Bullish iFVG

Bearish iFVG - broken bullish FVG now acting as resistance Bearish iFVG

Why It Works

Traders who took the original FVG are now trapped. Their stops get hit. The zone that attracted buyers now repels them.

When price returns to the inverted zone, it acts as a barrier in the new direction.

How to Find It

  1. Identify a valid FVG
  2. Wait for price to close through it with a full body
  3. The close should be strong (displacement), not a slow grind
  4. Mark the same zone but note the polarity flip
  5. The 50% level (CE) still matters for entries

Trading the Inversion

Entry: Wait for price to return to the iFVG. Enter at the zone or the 50% level.

Stop: Beyond the inversion point.

Target: Next significant level in the new direction.

When It Fails

An iFVG is invalid when price closes back through it in the original direction. This is called a double inversion and it’s messy. Avoid trading it.

If the original FVG was weak, the inversion won’t be strong either.

Quality Check

High-quality iFVG:

iFVG with strong displacement through the original gap iFVG with strong displacement

Low-quality iFVG:

Common Mistakes

Still trading the original FVG after it’s broken. Once price closes through, the FVG is dead. Flip your bias.

No displacement on the break. A slow grind through doesn’t confirm inversion. You need to see a strong candle close.

Fighting the bigger trend. A 5-minute iFVG against the 1-hour trend usually fails.

iFVGs in the Silver Bullet

Inversion FVGs on their own are just patterns. They have no statistical edge in isolation. What gives them power is context - when they align with a trading model.

Example: Morning manipulation creates FVGs in one direction. When the 10-11am window arrives and the true move begins, those FVGs fail and invert. The iFVG retest becomes your Silver Bullet entry - you’re not just trading a random inversion, you’re entering after the manipulation phase completes.

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