Price Action Toolkit: Inversion Fair Value Gaps

An Inversion Fair Value Gap (IFVG) is an invalidated Fair Value Gap (FVG) that indicates a shift in the market’s momentum, signaling a potential trend reversal. The Price Action Toolkit automatically identifies and plots IFVGs on your chart. Below we’ve outlined how each setting and feature works.

Settings

Invalidation Method

The Invalidation Method setting allows traders to choose how an IFVG is invalidated. You can choose between Close and Wick.

• Close: A candle must close below a bullish IFVG or above a bearish IFVG to invalidate it.

• Wick: A candle’s wick must go below a bullish IFVG or above a bearish IFVG to invalidate it.

Volumetric Info

Enabling the Volumetric Info setting displays the total volume of the IFVG.

Midline

When enabled, a dashed line is drawn at the center of the IFVG.