Inverse Fvg Calculator
Calculate inverse fair value gap levels where price may react as support or resistance. Enter values for instant results with step-by-step formulas.
Reviewed by Daniel Agrici, Founder & Lead Developer
Formula
Bullish IFVG: Gap High = C3 Low, Gap Low = C1 High | Bearish IFVG: Gap High = C1 Low, Gap Low = C3 High
The inverse FVG zone is defined by the gap between candle 1 and candle 3 in a three-candle displacement pattern. Once the original FVG is filled and violated, this zone reverses polarity, acting as support (bullish) or resistance (bearish). The midpoint is the key reaction level.
Worked Examples
Example 1: Bullish Inverse FVG on EUR/USD
Problem:A bullish 3-candle pattern shows C1 high=1.0920, C1 low=1.0880, C2 high=1.0960, C2 low=1.0900, C3 high=1.1000, C3 low=1.0950. Identify the IFVG levels.
Solution:Standard Bullish FVG:\nGap High = C3 Low = 1.0950\nGap Low = C1 High = 1.0920\nFVG Range = 1.0950 - 1.0920 = 0.0030 (30 pips)\nGap Midpoint = (1.0950 + 1.0920) / 2 = 1.0935\nEntry at midpoint: 1.0935\nSL = 1.0920 - 0.0005 = 1.0915 (20 pips risk)\nTP at 3:1 = 1.0935 + 0.0060 = 1.0995
Result:IFVG Zone: 1.0920 - 1.0950 | Entry: 1.0935 | SL: 1.0915 | TP: 1.0995 | Risk: 20 pips | Reward: 60 pips
Example 2: Bearish Inverse FVG on USD/JPY
Problem:Bearish 3-candle pattern: C1 high=149.80, C1 low=149.50, C2 high=149.60, C2 low=149.20, C3 high=149.30, C3 low=149.00. Find IFVG levels.
Solution:Standard Bearish FVG:\nGap High = C1 Low = 149.50\nGap Low = C3 High = 149.30\nFVG Range = 149.50 - 149.30 = 0.20 (20 pips)\nGap Midpoint = (149.50 + 149.30) / 2 = 149.40\nEntry at midpoint: 149.40\nSL = 149.50 + 0.05 = 149.55 (15 pips risk)\nTP at 3:1 = 149.40 - 0.45 = 148.95
Result:IFVG Zone: 149.30 - 149.50 | Entry: 149.40 | SL: 149.55 | TP: 148.95 | Risk: 15 pips | Reward: 45 pips
Frequently Asked Questions
How do I identify an inverse FVG on a price chart?
To identify an inverse FVG, first locate a standard three-candle fair value gap pattern. For a bullish FVG, the gap exists between the high of candle one and the low of candle three, with candle two being the displacement candle. Once you have identified a standard FVG, watch for price to return and trade through the gap entirely, invalidating the original imbalance. The zone that was previously a gap now becomes an inverse FVG. Mark the original gap boundaries because when price returns to this zone again, it will likely react in the opposite manner. The key distinction is that the FVG must be fully traded through before it becomes an inverse FVG, not just partially filled.
What is the difference between a regular FVG and an inverse FVG?
A regular fair value gap represents fresh imbalance in the market where institutional orders created a gap between the high of candle one and the low of candle three in a three-candle sequence. Price is expected to return to this gap to fill the imbalance. An inverse FVG is a previously filled regular FVG that has changed its polarity. Once price trades through and fills the original gap completely, the zone transforms from a filling target into a reaction zone with reversed polarity. A bullish FVG becomes bearish inverse resistance, and a bearish FVG becomes bullish inverse support. This concept is similar to the support-becomes-resistance principle in traditional technical analysis but applied specifically to ICT gap theory.
How do I trade inverse FVGs for optimal entries?
Trading inverse FVGs requires patience and precision in execution. First, identify the original FVG and wait for it to be fully violated by price action. Once violated, mark the zone as an inverse FVG. For a bullish inverse FVG (previous bearish gap acting as support), wait for price to pull back to the zone and enter long with a stop loss below the inverse FVG low plus a buffer. For bearish inverse setups, enter short when price rallies into the zone with stops above the high. The midpoint of the inverse FVG often provides the best entry because it balances fill probability with risk management. Always confirm the entry with lower timeframe market structure shifts before committing to the trade.
What timeframes work best for inverse FVG analysis?
Inverse FVG analysis is most effective on the 15-minute through daily timeframes, with different timeframes serving different purposes. The daily and 4-hour timeframes are ideal for identifying significant inverse FVGs that institutional traders respect, as these represent large-scale order flow imbalances. The 1-hour timeframe provides a good balance of signal quality and trading frequency. The 15-minute timeframe is useful for refining entries within higher timeframe inverse FVG zones. Timeframes below 15 minutes can generate too much noise and produce unreliable inverse FVGs. The recommended approach is to identify inverse FVGs on the 4-hour or daily chart and then use the 15-minute chart for precise entry timing within those zones.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy