FairValueGaps.comCheat sheet
Comparison

IFVG vs FVG

An FVG is a gap between the wicks of candles 1 and 3. An IFVG is the same box after a later candle has closed through it, now read as a zone of the opposite direction.

By Michael H.. Last updated . Corrections log

The short answer

Every IFVG starts as an FVG, but most FVGs never become an IFVG. The change needs one event: a candle that closes beyond the far edge of the gap. Until then it is a plain gap. After it, traders who use inversions read the same box as support or resistance of the opposite kind.

An inversion fair value gap in three stepsThree panels. First, a bullish gap forms. Second, a large falling candle closes below the bottom of the gap. Third, price rises back toward the same box from below, which some traders read as a bearish zone.1. A bullish gap formsZone marked. Price rises away.2. A candle closes below itThe close is under the far edge.3. The old gap is read upside downSome traders now watch it as a zone above price.Educators disagree on what counts as closing through. Some need a body close, some accept a wick.
Diagram, not a market chart. Whether price reacts to the old box is not shown and is not promised.
ComparedFVGIFVG
Found byComparing the wicks of candles 1 and 3An FVG, then a later close beyond its far edge
Exists fromCandle 3 closingThe candle that closes beyond the edge
Read asA zone price may return toThe same zone, now of the opposite kind
Shared exact ruleMostly: wicks and three candlesNo: educators differ on the close

The full idea is on the inversion fair value gap page.

On a real chart

XAUUSD15 minute2 bullish 4 bearish ยท 6 gaps by the rule
3980.004000.004020.0006:0008:0010:0012:0014:0016:00123456
  1. 1Bearish4013.64 to 4014.76formed 08:15 UTCTraded through at 08:15 UTC
  2. 2Bullish4019.16 to 4020.95formed 09:00 UTCTraded through at 13:45 UTC
  3. 3Bearish4008.84 to 4015.99formed 14:30 UTCNot revisited by 18:00 UTC
  4. 4Bearish4001.38 to 4007.13formed 14:45 UTCRe-entered at 14:45 UTC, not traded through
  5. 5Bullish3999.26 to 4001.34formed 16:15 UTCTraded through at 16:30 UTC
  6. 6Bearish3997.16 to 3998.82formed 17:30 UTCTraded through at 17:45 UTC
XAUUSD, 23 October 2026, 06:00 to 18:00 UTC. Real candles: Dukascopy 15-minute candles, read 2026-10-25. Fair value gap by the three-candle wick rule, no minimum size. Each box runs from its gap until a later candle trades through its far edge, or to the end of the chart.

Gold (XAUUSD), 23 October 2026, 06:00 to 18:00 UTC. The plain rule finds 6 gaps in this window. In 4 of them a later candle also closed beyond the far edge, the extra condition an inversion needs. The other 2 stayed plain gaps. This window was chosen because it reads clearly, and it says nothing about how often an inverted box holds.

What this site does not say

No rate for how often an inverted gap works is given here, because it has not been tested here. Both are ways to organise a chart, not signals.

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