Inversion Fair Value Gap
by ToodegreesHighlight orderflow shifts before they become obvious
Quick Info
Platform: TradingView
Concept: Structural imbalance detection and reference zones
Designed for: Traders who want consistent imbalance context in execution workflows
Best used when: Aligning entries and exits to potential imbalance completion zones and reducing guesswork
What It Does
IFVG° [Pro+] is an automated charting tool built to track inversion logic after displacement events, specifically when Fair Value Gaps (FVGs) are closed through and act as an inversion gaps. The tool adheres to logic taught and inspired by InnerCircleTrader methodology, offering a clean visual interface to support traders studying price behavior after liquidity sweeps, FVG closures, and delivery to targets.
Purpose
Many traders recognize imbalances on a chart but lack a structured way to define, filter, and act on them. Without a rule based method, this leads to inconsistent interpretation, overtrading, and confusion about which gaps matter.
Inverse Fair Value Gap° [Pro+] exists to:
- Systematically detect inverse fair value gaps using clear criteria
- Display them in a way that supports bias and execution decisions
- Reduce subjectivity in identifying and acting on gaps
With this indicator you can bring more discipline to imbalance analysis and align your entries and exits with observable structural inefficiencies.
Why Choose It
Fair value gaps are widely known but often used loosely without a consistent definition. Manually drawn gaps vary widely between traders, and some tools only mark every gap without context, creating noise.
Inverse Fair Value Gap° [Pro+] gives you:
- Consistent detection based on clear structural rules
- Filtered views so only relevant IFVGs are shown
- Immediate labels and drawings to make decision making faster
- A repeatable method that fits into your workflow rather than subjective interpretation
This saves chart marking time, reduces internal debate about which gaps matter, and brings clarity to imbalance based analysis.
Key Capabilities and Features
- Automatically identifies inverse fair value gaps based on structural criteria
- Displays gap zones with clear boundaries and numeric labels for range and direction
- Lets you choose which gap types to include so noise is reduced
- Visual customization options help you emphasize relevant gaps
- Works across all timeframes so gaps align with your execution view
- Table view provides numeric detail for each gap so review and filtering is faster
- Optional gap expiration logic helps control chart noise
Setup Guide
- Open TradingView and go to the Indicators panel
- Select Invite only scripts
- Add Inverse Fair Value Gap° [Pro+] to your chart
- In the settings:
- Choose which types of gaps to include
- Set history limits to control how many past gaps remain visible
- Customize visual preferences such as color and label style
- Enable or disable the table view for numeric context
- Once configured, use the plotted gap zones to:
- See structural inefficiencies on multiple timeframes
- Align entry planning with potential imbalance completion
- Reduce subjectivity in gap based decisions
When setup is complete, the indicator becomes a structural layer that supports your execution work and bias with clear imbalance context.
What Is an Inverted Fair Value Gap?
An inverted fair value gap is a Fair Value Gap that price has fully closed through after raiding liquidity, flipping the gap's role from its original direction to the opposite one. A Fair Value Gap (FVG) starts as a price imbalance, a gap between the high of one candle and the low of a later candle left behind by a strong directional move. On its own, that gap does not tell you which way the market is likely to react.
Inversion adds the missing context. First price raids a prior swing high or low, sweeping the liquidity resting there. Then, if a full-body candle closes back through an existing FVG after that raid, the gap is considered inverted. A bearish FVG closed above after a swing low raid, for example, inverts to bullish, suggesting a change in orderflow rather than a simple rebalance. This two-step requirement, a raid followed by a full-body close through the gap, is what separates an inverted fair value gap from an FVG that price merely revisits.
What Is an Inverse Fair Value Gap? (IFVG)
An inverse fair value gap, commonly shortened to IFVG, is the same concept as an inverted fair value gap: a Fair Value Gap that has flipped its role after price closes through it following a liquidity raid. "Inverse," "inverted" and "inversion" describe the same event; Toodegrees' own indicator uses "Inversion" in its name, Inversion Fair Value Gap° [Pro+], while traders more often search and speak using "inverse."
Once an inversion is confirmed, Inversion Fair Value Gap° [Pro+] draws a single horizontal line on the next candle, the IFVG line, marking the level at which the model's logic becomes active. That line is not a support or resistance prediction; it is a reference for tracking the model going forward. The tool then projects the opposing swing, the high or low on the other side of the original raid, as the model's first mechanical target, and tracks invalidation if price closes back through the inversion. Every step runs on confirmed, full-body candle closes, not on wicks or forecasts.
Inverse Value Gap: A Note on the Term
"Inverse value gap" is the same concept as an inverse fair value gap, with "fair" dropped from the phrase. It is not a different structure or a separate indicator setting, it is shorthand for the gap described above: a Fair Value Gap that price has fully closed through after a liquidity raid, reversing its original role.
See What Is an Inverted Fair Value Gap? above for the full mechanism, and What Is an Inverse Fair Value Gap? for how Inversion Fair Value Gap° [Pro+] tracks it.
Conclusion
Inverse Fair Value Gap° [Pro+] is not a trade signal tool. It gives consistent structural context for fair value gaps that:
- Reduces manual marking and subjectivity
- Provides repeatable reference zones for execution decisions
- Saves time and cognitive effort in imbalance analysis
This fits into a workflow that increases confidence in decision making and reduces second guessing.