Inverse FVG (IFVG): when a gap flips

6 min 55 XP

What an Inverse FVG is

An ordinary FVG is meant to be respected: price returns, reacts, and the trend continues. But sometimes price does the opposite — it closes a full body clean through the gap instead of bouncing from it. When a fair value gap is violated like that, it does not just disappear. It flips polarity and becomes an Inverse Fair Value Gap (IFVG).

Bullish FVG violated → bearish IFVG

Price closes BELOW a bullish (demand) gap.
The old support flips into resistance.
Retest from below → look for shorts.

Bearish FVG violated → bullish IFVG

Price closes ABOVE a bearish (supply) gap.
The old resistance flips into support.
Retest from above → look for longs.

Body close, not a wick

The flip only counts on a full-body CLOSE through the gap — the same close-not-touch rule as BOS/CHoCH. A wick that pokes through and closes back inside has NOT violated the gap; that is just mitigation.

Respected FVG = continuation; violated FVG = an IFVG (reversal signal).
Violation = a full body CLOSE through the gap, not a wick.
Bullish FVG broken → bearish IFVG (support becomes resistance).
Bearish FVG broken → bullish IFVG (resistance becomes support).
The entry is the RETEST of the flipped zone, in the new direction.

Praxis.

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Level 2: Technical Analysis

M7 · Order Blocks · Lesson 122/144