Inversion FVG (IFVG): When an FVG gets Overrun
Inversion Fair Value Gap (IFVG) is the phenomenon in which a fair value gap (FVG) was previously formed but was easily penetrated by the price and closed the candle on the other side. At this time, the old FVG's role will be completely reversed (similar to support turning resistance).
1. FVG Inversion Bias Change Mechanism
The nature of FVG is an imbalance zone that holds the price to continue the trend. When Smart Money decided to **not respect** that FVG anymore and pierce it decisively, this signaled that the Bias (trend bias) had reversed:
- Bullish FVG turns into IFVG (Support turns into Resistance): FVG's price crashed from top to bottom and closed below the bottom of candle 1 of FVG. When the price returns to test from the bottom up, this FVG turns into a strong resistance area to open a SELL order.
- Bearish FVG turns IFVG (Resistance turns Support): The bearish FVG was penetrated from the bottom up and closed above the top of candle 1 of FVG. When the price returns to test from above, this FVG turns into strong support to open a BUY order.
2. How to Real Trade with IFVG
Trading with IFVG is a great way to ride the new trend as soon as there is a structural reversal signal (MSS):
📌 Core rules:
- Confirm: Wait for the candle to close completely beyond the outer boundary of the old FVG. If you just sweep the candle's wick over and then pull the pin to close the door inside the FVG, it's not an IFVG (it's still the old FVG that's working fine).
- Entry: Place a Limit order at the nearest border of IFVG when the price retests.
- Stop Loss: Place your stop loss just behind the opposite edge of that IFVG, or behind the candle body of the breakout push.
📷 Figure 10.1: Bearish FVG was strongly pushed by the candle and closed above, becoming Inversion FVG (IFVG) acting as support. The regression price accurately retested this IFVG zone and then rebounded strongly toward Buy-side Liquidity.
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