# ICT Implied Fair Value Gap (IFVG) ICT Implied Fair Value Gap (IFVG) is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®. Automatic detection of Implied Fair Value Gaps, the ICT imbalance built from a three-candle formation where a large central body is flanked by pronounced shadows. Each zone plots with an extendable average that doubles as dynamic support or resistance, and alerts fire on new bullish and bearish formations. Made for imbalance and smart-money traders. - Indicator in the LuxAlgo Library, by LuxAlgo, published Feb 22, 2023. - Access: free. - Concepts: [Implied FVG](https://www.luxalgo.com/library/concept/implied-fvg/) (primary), [Fair Value Gap](https://www.luxalgo.com/library/concept/fair-value-gap/) - Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn2dq80039vhsghk312vwi - Page: https://www.luxalgo.com/library/indicator/ict-implied-fair-value-gap-ifvg/ **ICT Implied Fair Value Gap (IFVG)** auto-detects the [implied fair value gap](https://www.luxalgo.com/library/concept/implied-fvg/): a three-candle pattern whose oversized central body and pronounced flanking shadows betray an imbalance that never shows up as actual empty space on the chart. Where [standard fair value gaps](https://www.luxalgo.com/library/concept/fair-value-gap/) are read straight off candle extremes, the implied version is measured from the average of the two adjacent candles' shadows, and this build can extend that average forward until the next equivalent formation appears, turning every detection into a dynamic support or resistance level. ## How to Trade the ICT Implied Fair Value Gap (IFVG)? - **Bullish IFVG**: the highlighted zone gives returning price a place to find support, a reference area for planning longs. - **Bearish IFVG**: within a downtrend the zone acts as potential resistance, framing short entries on the retest. - **Extended averages**: with the average projected forward, older IFVGs become longer-term support/resistance lines that stay live until a new formation replaces them. Detection is rule-based on both sides: the central candle body must exceed its neighbors, the wicks of the first and third candles must overlap, so no regular gap exists, and both flanking shadows must exceed a user-set percentage of the latest candle's range. ## ICT Implied Fair Value Gap (IFVG) Settings - **Shadow Threshold %**: the minimum size of each flanking shadow as a percentage of the latest candle's range (default 30). Raise it to keep only the most pronounced imbalances; lower it to catch more formations. - **IFVG Extension**: how many bars each highlighted area extends to the right of its formation. - **Extend Averages**: keeps projecting a zone's average until the next corresponding IFVG is detected, the option to enable for longer-term support/resistance work. ## Frequently Asked Questions ### How is an implied fair value gap different from a regular FVG? A regular gap needs the first and third candles' extremes to leave genuinely untraded space; an implied one has overlapping wicks, with long opposing shadows pointing into a dominant central body. For classic gap coverage, including opening gaps and volume imbalances, the [Imbalance Detector](https://www.luxalgo.com/library/indicator/imbalance-detector/) handles those detections. ### Does the indicator include alerts? Yes. Alerts are available for both bullish and bearish IFVG formations, so new imbalances can flag themselves without you watching the chart bar by bar. ### How can I access the ICT Implied Fair Value Gap (IFVG)? It is free in the LuxAlgo Library. You can also load it into Quant, our coding agent, straight from this page to test it on your own markets. You can also copy the source code from this page and run it anywhere Pine Script® runs. ## Related indicators - [Fair Value Gap Absorption Indicator](https://www.luxalgo.com/library/indicator/fair-value-gap-absorption-indicator/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/fair-value-gap-absorption-indicator.md - [Fair Value Gaps Mitigation Oscillator](https://www.luxalgo.com/library/indicator/fair-value-gaps-mitigation-oscillator/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/fair-value-gaps-mitigation-oscillator.md - [Sweeps & IFVGs](https://www.luxalgo.com/library/indicator/sweeps-ifvgs/) (Inversion FVG): markdown at https://www.luxalgo.com/library/indicator/sweeps-ifvgs.md - [Significant Breakout Levels (FVG)](https://www.luxalgo.com/library/indicator/significant-breakout-levels-fvg/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/significant-breakout-levels-fvg.md - [AMD FVG Trade Setup](https://www.luxalgo.com/library/indicator/amd-fvg-trade-setup/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/amd-fvg-trade-setup.md - [FVG + Liquidity Sweep + CISD](https://www.luxalgo.com/library/indicator/fvg-liquidity-sweep-cisd/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/fvg-liquidity-sweep-cisd.md - [Session Sweep & iFVG RR](https://www.luxalgo.com/library/indicator/session-sweep-ifvg-rr/) (Inversion FVG): markdown at https://www.luxalgo.com/library/indicator/session-sweep-ifvg-rr.md - [Inversion Fair Value Gaps (IFVG)](https://www.luxalgo.com/library/indicator/inversion-fair-value-gaps-ifvg/) (Fair Value Gap): markdown at https://www.luxalgo.com/library/indicator/inversion-fair-value-gaps-ifvg.md --- Source: https://www.luxalgo.com/library/indicator/ict-implied-fair-value-gap-ifvg/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/