Inversion fair value gap (IFVG)
Also called IFVG, inverted FVG. What it means, how it looks on a gold (XAUUSD) chart, and the mistake most traders make with it.
Inversion fair value gap: An inversion fair value gap is a gap that price closes through. It flips roles: a broken bullish gap becomes resistance, a broken bearish gap becomes support.
Inversion fair value gap on a gold chart
A bullish gap on gold at $4,125–$4,132 is closed through by a 15-minute candle to $4,118. When price rallies back into $4,125–$4,132, the gap now acts as resistance for a short.
How traders use it
Traded on the retest. It is often used as a faster alternative to waiting for a breaker.
Common mistake
Calling a wick through the gap an inversion. It needs a candle body close on the far side.
Questions
What does inversion fair value gap mean in trading?
An inversion fair value gap is a gap that price closes through. It flips roles: a broken bullish gap becomes resistance, a broken bearish gap becomes support.
How is inversion fair value gap used on gold (XAUUSD)?
Traded on the retest. It is often used as a faster alternative to waiting for a breaker.
Educational content, not financial advice. Every concept here is a probability, not a guarantee.
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