Core
NQ, ES.Inversion FVG (iFVG)
When price closes fully through a fair value gap instead of respecting it, that gap inverts. A bullish gap that fails becomes resistance; a bearish gap that fails becomes support. The retest of an inverted gap is a high-probability entry because it proves the previous direction was rejected.
Why it works
A level that fails to hold tells you more than a level that holds. Failure means the other side won.
Timeframes
1m and 5m for execution, 15m for the bigger inversions.
Session
Strongest during New York.
The checklist
- 1An existing fair value gap is traded fully through with a body close.
- 2Price returns to the gap from the opposite side.
- 3The retest is rejected.
Execution
Entry
At the retest of the inverted gap.
Stop
Beyond the far edge of the inverted gap.
Target
Opposing liquidity — session high/low or PDH/PDL.
When you should not take it
- Do not count a wick-through as an inversion. It needs a body close.
Full guide
Read the in-depth guide with examples and FAQ