Inversion fair value gaps

Fair Value Gaps

When a failed gap flips roles

When a bullish FVG fails and price closes all the way through it, that same zone can flip roles and start acting as resistance instead. That flipped zone is an inversion fair value gap, or IFVG.

Same logic as broken support

The logic mirrors broken support becoming new resistance. Traders who bought that zone as support are now trapped, and their exit orders help the level hold as resistance next time price returns.

A second read on a failed zone

Inversion FVGs give traders a second read on a failed zone instead of just discarding it. A failed bullish gap becomes a legitimate bearish setup once it inverts.