SMC Term — Zone
What is IFVG?
Inverse Fair Value Gap
IFVG — Inverse Fair Value Gap
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An Inverse Fair Value Gap (IFVG) forms when a bullish FVG gets broken to the downside, converting support into resistance, or a bearish FVG gets broken upward, converting resistance into support. The gap flips and now acts as a zone in the opposite direction. IFVGs are considered powerful because they combine the concepts of a broken level and an imbalance.
How to Trade IFVG
After identifying a bullish FVG that price has since broken through bearishly, mark that zone as a potential bearish IFVG. If price retraces back into the former FVG zone, it may now act as resistance. Look for bearish confirmation candles (rejection wicks, bearish engulfing) inside the IFVG zone. This flip concept applies to OBs as well — a broken OB becomes a Breaker Block.
Real Example — XAUUSD
Example: A bullish FVG at 3290–3300 held price on the first retest. Then price aggressively breaks below 3290 with a strong bearish candle. That FVG is now an IFVG — a bearish resistance zone. When price retraces back to 3290–3300, look for short entries.
Related SMC Terms
Frequently Asked Questions
What is an Inverse Fair Value Gap (IFVG)?
An IFVG forms when an original Fair Value Gap is broken through with a strong candle, flipping its direction. A bullish FVG that is broken to the downside becomes a bearish IFVG — the former support zone now acts as resistance. IFVGs are high-probability zones because they combine an imbalance with a broken structure level.
How is IFVG different from a regular FVG?
A regular FVG is a fresh imbalance zone in the direction of the trend. An IFVG is a former FVG that has been invalidated and flipped. IFVGs are considered stronger as resistance or support because price has already shown it can break through, adding confirmation to the flip.
Does price always fill an IFVG?
Not always, but IFVGs are high-probability reaction zones. After a strong break through an FVG, price frequently retraces to test the former zone before continuing. The first retest of an IFVG tends to be the strongest reaction. Subsequent retests are progressively weaker.
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