Inversion Fair Value Gaps (IFVG)
By LuxAlgoFeb 1, 2024503 chart adds
Inversion Fair Value Gaps (IFVG) is an indicator on Vela, our next-generation charting platform, written in Pine Script®.
Inversion Fair Value Gaps (IFVG) marks the spots where a failed gap switches sides. An inversion FVG forms when price closes through an entire fair value gap against its original bias: the broken bullish gap becomes candidate resistance, the broken bearish gap candidate support. The indicator plots each inversion as it develops and signals the retests that confirm the new role.
How to Trade the Inversion Fair Value Gaps (IFVG)?
- Bullish signal: price returns to a bullish inversion zone and exits through the top. The level held as support.
- Bearish signal: price revisits a bearish inversion zone and rejects it. Resistance confirmed.
- Zone resets: once an inversion zone is itself mitigated, its areas, lines, and signals are cleared so only live levels remain on the chart.
- Alerts: alert conditions cover both the bullish and bearish retest signals for hands-off monitoring.
The tool is deliberately oriented to live analysis. Because inversion zones reset dynamically as they are mitigated, historical bars cannot reproduce the state a trader actually faced at the time, so judge it forward on real-time markets rather than by scrolling back.
Inversion Fair Value Gaps (IFVG) Settings
- Show Last: how many recent bullish/bearish inversion pairs stay visible, up to 100.
- Signal Preference: derive retest signals from wicks or from closing prices.
- ATR Multiplier: filters gaps by width, keeping only inversions wider than the ATR-scaled threshold.
Frequently Asked Questions
Free to use
Run it on Vela. Go further with a paid plan.
- Up to 500 Custom Alerts, with webhook automation
- Up to 10× the chart history of Free
- Orderflow lookback up to full history
- More Quant usage to customize it, plus extra usage when you need it
- Futures data alongside crypto, stocks, forex and commodities
Also works on
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Open this indicator free on Vela, our next-generation charting platform. Then ask Quant, our coding agent built into Vela, to retune it or turn it into a backtested strategy of your own.