What Is an Inverse Fair Value Gap (IFVG)?
An inverse fair value gap (IFVG) is a fair value gap that price has traded completely through, invalidating it. When an FVG fails like this, it flips polarity: a bullish FVG that gets violated turns into resistance, and a bearish FVG that gets violated turns into support. It's one of the cleanest signals that momentum has shifted.
FVG vs. IFVG
A normal FVG is expected to hold and push price in the direction of the move that made it. But markets shift. When price blows straight through an FVG instead of respecting it, that failure is meaningful — it tells you the other side just took control. The dead FVG becomes an inverse FVG and now acts in the opposite direction.
How an IFVG forms
- Price creates a fair value gap during a move.
- Instead of respecting it on the retrace, price trades fully through and closes beyond it.
- That violated gap now flips: former support becomes resistance (or vice-versa).
- Traders watch for price to retest the flipped zone to confirm the new direction.
How to trade an IFVG
IFVGs are popular for spotting reversals and momentum flips. A common play: price violates a bearish FVG to the upside (turning it into support), retests it, holds, and continues higher — you enter on the retest with a stop below the flipped zone, targeting the next liquidity pool. As always, it's a probability tool used with structure and strict risk control — not a magic signal.
An FVG that fails often tells you more than one that holds. Failed levels reveal who's really in control.
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What does IFVG mean?
IFVG stands for "inverse fair value gap" — a fair value gap that was violated and now acts in the opposite direction.
Is an IFVG bullish or bearish?
Either. A violated bearish FVG becomes bullish support; a violated bullish FVG becomes bearish resistance. It depends which one failed.
Educational content only, not financial advice. Trading futures carries substantial risk of loss.