inverse fair value gaps report: what it measures and how traders use it

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the inverse fair value gaps (iFVG) report on edgeful tracks fair value gaps that get fully mitigated and then flip polarity, creating a new zone with the opposite directional bias.

categorizes every iFVG as bullish or bearish, then tracks whether the zone gets re-mitigated within the same session at your chosen percentage threshold.

this is one of the 150+ reports available on the edgeful platform. here's how it works, what the data shows, and how traders use it.

table of contents

  • what the inverse fair value gaps report measures
  • how the calculation works
  • how traders use inverse fair value gaps data
  • combining inverse fair value gaps with other reports
  • key takeaways

what the inverse fair value gaps report measures

identifies standard 3-candle FVGs, checks whether each one gets fully filled within the same session, and then flips polarity once that happens. a mitigated bearish FVG becomes a bullish iFVG; a mitigated bullish FVG becomes a bearish iFVG. tracks whether the new iFVG zone gets re-mitigated within the same session.

the report is available for futures, stocks, ETFs, forex, and crypto. you can filter by ticker, session (NY, London, Asian, full globex, or custom), weekdays, mitigation method (by-close or by-wick), and re-mitigation percentage threshold.

how the calculation works

the inverse fair value gaps report walks through each session and looks for FVGs that completed a polarity flip.

  • the report identifies standard 3-candle FVG patterns where candle 1 and candle 3 do not overlap
  • it then checks whether subsequent candles in the same session fully mitigate the gap (100% fill)
  • when full mitigation occurs the zone flips polarity — bearish FVG becomes bullish iFVG and vice versa
  • the iFVG zone boundaries match the original FVG zone boundaries
  • the report then tracks whether the iFVG zone gets re-mitigated to your percentage threshold within the same session
  • counts and percentages are split by bullish vs bearish iFVGs and re-mitigated vs unmitigated

how traders use inverse fair value gaps data

  • using iFVG zones as higher-conviction support and resistance since the level has already proven significant
  • entering on re-mitigation tests of the iFVG zone in the same session
  • filtering for specific weekdays where iFVG re-mitigation rates run hotter or colder
  • combining with standard fair value gaps data to compare regular FVG fill rates with iFVG behavior
  • using by-wick vs by-close mitigation to match the way you measure other levels in your strategy

the data doesn't tell you to trade. the inverse fair value gaps report tells you the historical performance of the setup in front of you. what you do with that information is your decision.

results require customization, time, and effort. the numbers change depending on your ticker, session, and lookback period. always check the data for your specific conditions.

combining inverse fair value gaps with other reports

the inverse fair value gaps report works best when combined with other edgeful reports for confluence:

  • use the what's in play dashboard to see inverse fair value gaps data alongside your other favorite reports in one view
  • the screener lets you scan up to 49 tickers for inverse fair value gaps setups across 4 reports simultaneously
  • edgeful AI can analyze inverse fair value gaps data alongside other reports and find patterns you'd never spot manually

key takeaways

  • the edgeful inverse fair value gaps report measures FVGs that fully mitigate and flip polarity, then tracks whether the new iFVG zone gets re-mitigated
  • available for futures, stocks, ETFs, forex, and crypto with full session, ticker, weekday, and percentage filtering
  • by-close and by-wick mitigation methods available
  • part of the 150+ reports included in the edgeful essential plan ($49/month or $39/month annual)
  • works best when combined with other reports using what's in play, the screener, or edgeful AI

trading involves risk. past performance and historical data do not guarantee future results. the statistics referenced in this post are based on historical data and may not reflect future market conditions. always trade with proper risk management.

this information is not trading advice and should be used for educational purposes only. futures, options, and forex are leveraged instruments, and carry a high degree of risk. past results are not indicative of future returns. your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness, and usefulness of the information.

futures and forex trading contains substantial risk and is not for every investor. an investor could potentially lose all or more than the initial investment. risk capital is money that can be lost without jeopardising ones' financial security or life style. only risk capital should be used for trading and only those with sufficient risk capital should consider trading. past performance is not necessarily indicative of future results.

testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.