FVG & IFVG ICT Inversion Fair Value Gap Signal

The FVG & IFVG ICT Inversion Fair Value Gap Signal indicator provides a comprehensive toolkit for identifying and tracking standard Fair Value Gaps (FVG) and their inverted counterparts (IFVG) based on Inner Circle Trader (ICT) concepts. It automatically detects price imbalances, monitors their validity over time, and highlights when these areas transition from standard gaps into inversion levels, offering traders a clear view of shifting market momentum.

Usage

The Usage section focuses on identifying the two primary types of price action gaps provided by the tool:

• Fair Value Gaps (FVG): These are identified by a three-candle sequence where a large central candle leaves a price gap between the wicks of the preceding and succeeding candles. These areas typically act as magnets or support/resistance zones until mitigated.
• Inversion Fair Value Gaps (IFVG): An IFVG occurs when a previously established FVG is violated. For example, if the price closes above a Bearish FVG, it transforms into a Bullish IFVG, acting as a new support level. Conversely, if the price closes below a Bullish FVG, it becomes a Bearish IFVG, acting as a resistance level.

Traders can use these zones to anticipate reversals or trend continuations. The indicator also provides visual mitigation levels (Proximal, Distal, or 50% Median) to help refine entry and exit points.

Details

This script utilizes advanced logic to filter and draw boxes representing market imbalances. A Fair Value Gap represents a period where price moves so rapidly that an inefficiency is created. When market sentiment shifts, these inefficiencies are often "inverted." Instead of the price respecting the original direction of the gap, it breaks through it, turning the "failed" gap into a support or resistance zone for the opposite direction. The tool includes multiple filtering algorithms to ensure that only significant price imbalances are displayed, reducing chart noise.

Settings

Global Setting

• Show All FVG: Toggles between displaying all historical gaps or only the most recent one.
• Show All Inversion FVG: Toggles between displaying all historical inversion gaps or only the most recent one.
• FVG & IFVG Validity Period (Bar): Determines how many bars a gap remains active on the chart before being removed.
• Switching Colors Theme Mode: Adjusts the visual output for Light or Dark modes.

FVG & Logic Settings

• FVG Filter: Enables a filtering algorithm to refine the quality of detected gaps.
• FVG Filter Type: Options include Very Aggressive, Aggressive, Defensive, and Very Defensive. Each level adds stricter criteria regarding candle size and structure.
• Mitigation Level: Selects whether alerts and visual triggers occur at the Proximal (nearest), Distal (furthest), or 50% (midpoint) level of the gap.

Display & Alert Settings

• Show Bullish/Bearish (I)FVG: Individual toggles for displaying specific gap types.
• Alert FVG/IFVG Mitigation: Enables alerts when price interacts with the defined levels.
• Message Frequency: Controls alert triggers (All, Once Per Bar, or Per Bar Close).

FAQ

How do I use the FVG & IFVG ICT Inversion Fair Value Gap Signal?

You can use it to find institutional footprints in the market. Look for instances where a Bearish FVG is broken to find Bullish Inversion setups, or where a Bullish FVG is broken for Bearish Inversion setups.

Can I filter out small, insignificant gaps?

Yes, you can use the "FVG Filter Type" setting and set it to "Defensive" or "Very Defensive" to ensure only the most significant price imbalances are shown on your chart.

How can I access this indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.