What is an Inverse FVG?
A standard Fair Value Gap is a three-candle imbalance. When price respects the FVG on a retest, it defends the original direction. But when price closes through the far edge of the FVG, the imbalance is considered invalidated — and the level inverts.
- Bullish FVG closed through: the gap is now treated as bearish resistance. Retest = short opportunity.
- Bearish FVG closed through: the gap is now treated as bullish support. Retest = long opportunity.
Why IFVGs work
The original imbalance represented unfilled institutional orders. When price closes through it, those orders have been absorbed and the dynamic has flipped — the side that was buying is now defending, and vice versa. The inverted level is where the new dominant side will defend again.
How to trade an IFVG
- Identify the original FVG and confirm price has closed (body, not wick) through the far edge.
- Mark the inverted level — the original FVG range becomes your retest zone.
- Wait for price to return to the IFVG. Best when it returns inside a Killzone.
- Enter on first touch (CE works) with stop just beyond the far side of the inverted gap.
- Target the next opposing liquidity pool.
IFVG vs FVG — when to use which
- Use the FVG when daily bias agrees with the FVG direction and price retraces into it for the first time.
- Use the IFVG when daily bias has shifted, price has closed through the original FVG, and the retest aligns with the new bias.
Common mistakes
- Wick through, not close through. A wick is not an invalidation — it's a sweep. The FVG is still active.
- Trading IFVG against fresh bias. If bias hasn't actually shifted, the IFVG retest often fails.
- No Killzone. Like any ICT setup, IFVGs are most reliable inside London Open or NY AM.
Backtest IFVGs on NQ
Open NQ Replay and mark every FVG that prints in a NY AM session. Note which get respected on retest (FVG plays) and which get closed through and then inverted (IFVG plays). The ratio per session will tell you which concept is more common in current market conditions.
Frequently asked questions
What is an inverse fair value gap?
An inverse FVG, or IFVG, is a Fair Value Gap that has been closed through by price. Once invalidated, the level flips polarity — bullish FVGs become resistance and bearish FVGs become support on retest.
IFVG vs FVG — what's the difference?
An FVG is a fresh imbalance that defends the original direction on retest. An IFVG is the same level after it has been closed through, where it defends the opposite direction.
How do I confirm an IFVG is valid?
Price must close (body, not wick) through the far edge of the original FVG. A wick through is a sweep, not an invalidation — in that case the FVG is still active.
Can I trade IFVGs on NQ futures?
Yes — IFVGs are among the most common reversal setups in NQ Killzones. Bar-by-bar replay is the fastest way to build pattern recognition for them.