Get started

U.S. Dollar / Euro

No trades
See on Supercharts
Overview News
Ideas
Discussions Technicals Seasonals Economic Calendar

USDEUR trade ideas

What Is an Inverse Fair Value Gap (IFVG) Concept in Trading?What Is an Inverse Fair Value Gap (IFVG) Concept in Trading? Inverse Fair Value Gaps (IFVGs) are a fascinating concept for traders seeking to refine their understanding of price behaviour. By identifying areas where market sentiment shifts, IFVGs provide unique insights into potential reversals and key price levels. In this article, we’ll explore what IFVGs are, how they differ from Fair Value Gaps, and how traders can integrate them into their strategies for more comprehensive market analysis. What Is a Fair Value Gap (FVG)? A Fair Value Gap (FVG) occurs when the market moves so rapidly in one direction that it leaves an imbalance in price action. This imbalance shows up on a chart as a gap between three consecutive candles: the wick of the first candle and the wick of the third candle fail to overlap, leaving a “gap” created by the second candle. It essentially highlights an area where buying or selling pressure was so dominant that the market didn’t trade efficiently. Traders view these gaps as areas of potential interest because markets often revisit these levels to "fill" the imbalance. For example, in a bullish FVG, the gap reflects aggressive buying that outpaced selling, potentially creating a future support zone. On the other hand, bearish FVGs indicate overwhelming selling pressure, which might act as resistance later. FVGs are closely tied to the concept of fair value. The gap suggests the market may have deviated from a balanced state, making it an area traders watch for signs of price rebalancing. Recognising and understanding these gaps can provide insights into where the price might gravitate in the future, helping traders assess key zones of interest for analysis. Understanding Inverse Fair Value Gaps (IFVGs) An Inverse Fair Value Gap (IFVG), or Inversion Fair Value Gap, is an Inner Circle Trader (ICT) concept that builds on the idea of an FVG. While an FVG represents a price imbalance caused by strong directional movement, an IFVG emerges when an existing FVG is invalidated. This invalidation shifts the role of the gap, turning a bearish FVG into a bullish IFVG, or vice versa. Here’s how it works: a bearish FVG, for instance, forms when selling pressure dominates, leaving a gap that might act as resistance. However, if the market breaks through this gap—either with a wick or a candle close—it signals that the sellers in that zone have been overwhelmed. The bearish FVG is now invalidated and becomes a bullish IFVG, marking a potential area of support instead. The same applies in reverse for bullish FVGs becoming bearish IFVGs. Traders use inverted Fair Value Gaps to identify zones where market sentiment has shifted significantly. For example, when the price revisits a bullish IFVG, it may serve as a zone of interest for traders analysing potential buying opportunities. However, if the price moves past the bottom of the IFVG zone, it’s no longer valid and is typically disregarded. What makes these reverse FVGs particularly useful is their ability to highlight moments of structural change in the market. They can act as indicators of strength, revealing areas where price has transitioned from weakness to strength (or vice versa). By integrating IFVG analysis into their broader trading framework, traders can gain deeper insights into the evolving dynamics of supply and demand. Want to test your IFVG identification skills? Get started on FXOpen and TradingView. How Traders Use IFVGs in Trading By integrating IFVGs into their strategy, traders can refine their decision-making process and uncover potential setups aligned with their broader market outlook. Here’s how IFVGs are commonly used: Identifying Key Zones of Interest Traders begin by spotting FVGs on price charts—areas where rapid movements create imbalances. An inversion FVG forms when such a gap is invalidated; for instance, a bearish FVG becomes bullish if the price breaks above it. These zones are then marked as potential areas of interest, indicating where the market may experience significant activity. Contextualising Market Sentiment The formation of an IFVG signals a shift in market sentiment. When a bearish FVG is invalidated and turns into a bullish IFVG, it suggests that selling pressure has diminished and buying interest is gaining momentum. Traders interpret this as a potential reversal point, providing context for the current market dynamics. Analysing Price Reactions Once an IFVG is identified, traders monitor how the price interacts with this zone. If the price revisits a bullish IFVG and shows signs of support—such as slowing down its decline or forming bullish candlestick patterns—it may indicate a strengthening upward movement. Conversely, if the price breaches the IFVG without hesitation, the anticipated reversal might not materialise. How Can You Trade IFVGs? IFVGs provide traders with a structured way to identify and analyse price levels where sentiment has shifted. The process typically looks like this: 1. Establishing Market Bias Traders typically start by analysing the broader market direction. This often involves looking at higher timeframes, such as the daily or 4-hour charts, to identify trends or reversals. Tools like Breaks of Structure (BOS) or Changes of Character (CHoCH) within the ICT framework help clarify whether the market is leaning bullish or bearish. Indicators, such as moving averages or momentum oscillators, can also provide additional context for confirming directional bias. A strong bias ensures the trader is aligning setups with the dominant market flow. 2. Identifying and Using IFVGs Once a Fair Value Gap (FVG) is invalidated—indicating a significant shift in sentiment—it transforms into an Inverse Fair Value Gap (IFVG). Traders mark the IFVG zone as a key area of interest. If it aligns with their broader market bias, this zone can serve as a potential entry point. For instance, in a bearish bias, traders may focus on bearish IFVGs that act as potential resistance zones. 3. Placing Orders and Risk Management Traders often set a limit order at the IFVG boundary, anticipating a retracement and for the area to hold. A stop loss is typically placed just beyond the IFVG or a nearby swing high/low to manage risk. For exits, targets might include a predefined risk/reward ratio, such as 1:3, or a significant technical level like an order block or support/resistance area. This approach ensures trades remain structured and grounded in analysis. Advantages and Disadvantages of IFVGs IFVGs offer traders a unique lens through which to analyse price movements, but like any tool, they come with both strengths and limitations. Understanding these can help traders incorporate IFVGs into their strategies. Advantages - Highlight market sentiment shifts: IFVGs pinpoint areas where sentiment has reversed, helping traders identify key turning points. - Refined entry zones: They provide precise areas for potential analysis, reducing guesswork and offering clear levels to watch. - Flexibility across markets: IFVGs can be applied to any market, including forex, commodities, or indices, making them versatile. - Complementary to other tools: They pair well with other ICT tools like BOS, CHoCH, and order blocks for enhanced analysis. Disadvantages - Subject to interpretation: Identifying and confirming IFVGs can vary between traders, leading to inconsistencies. - Limited standalone reliability: IFVGs need to be used alongside broader market analysis; relying solely on them increases risk. - Higher timeframe dependence: Their effectiveness can diminish on lower timeframes, where noise often obscures true sentiment shifts. - Potential for invalidation: While IFVGs signal potential opportunities, they aren’t guarantees; price can break through, rendering them ineffective. The Bottom Line Inverse Fair Value Gaps provide traders with a structured approach to identifying market shifts and analysing key price levels. By integrating IFVGs into a broader strategy, traders can uncover valuable insights and potentially refine their decision-making. Ready to apply IFVG trading in real markets? Open an FXOpen account today and explore potential trading opportunities across more than 700 markets, alongside four advanced trading platforms and competitive conditions. FAQ What Is an Inverse Fair Value Gap (IFVG)? The IFVG meaning refers to a formation that occurs when a Fair Value Gap (FVG) is invalidated. For example, a bearish FVG becomes bullish after the price breaks above it, creating a potential support zone. Similarly, a bullish FVG can transform into a bearish IFVG if the price breaks below it, creating a potential resistance zone. IFVGs highlight shifts in market sentiment, providing traders with areas of interest for analysing possible reversals or continuation zones. What Is the Difference Between a Fair Value Gap and an Inverse Fair Value Gap? A Fair Value Gap (FVG) is an imbalance caused by aggressive buying or selling, creating a price gap that may act as support or resistance. An Inverse Fair Value Gap (IFVG) occurs when the original FVG is invalidated—indicating a shift in sentiment—and its role flips. For instance, a bearish FVG invalidated by a price breakout becomes a bullish IFVG. What Is the Difference Between BPR and Inverse FVG? A Balanced Price Range (BPR) represents the overlap of two opposing Fair Value Gaps (FVGs), creating a sensitive zone for potential price reactions. In contrast, an Inverse Fair Value Gap (IFVG) is a concept based on a single FVG that has been invalidated, flipping its role. While both are useful, BPR reflects the equilibrium between buyers and sellers, whereas IFVG highlights sentiment reversal. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
1
STOP GOING LONG ! Hello. Have you guys looked at USD currencies pair on the monthly chart ? EUR & AUD looks as if the bears will come back into play on a bigger picture. And for what I see currently. 1.07606 is the level of support I want to target. Maybe even 1.07326. We have seen some price rejection around the 1.0820 - 1.8290 range. If price can stick a strong bullish candle over that range I would reverse to taguer the highs. But the bulls haven't controlled the market since the big push a few weeks back. The longer they take to push up the market and continue the trend the better opportunity for seller to take control. And again I want to reiterate look on the bigger timeframes.
Short
by XTyriq
EURUSD April 1EURUSD April 1 Parent bias is bull Price is in a Premium M/W/D Premium recent range Premium and a Price is on the 50 level previous range. Dealing range pips 12 News 10 March 31 Delivery Price opens in Asia to take minor buys side. London 3 macro my set up formed. Price breaks down with clear targets to rebalance the FVG created on Friday. In NY lowers taking sell stops and create equal lows before retracing to close consolidating on the 50 level. Price expanded to retrace to consolidated. *Note the candle patterns were somewhat high resistance. And yet Price eventually made it to my targets. Desensitize yourself to this kind of Price action is what I learned yesterday. April 1 Analysis I suspect that Price could continue to seek lower prices to the clean equal lows target maybe in Asia and London and reverse in NY. I tape read and the above speculation is only an idea. I read what the chart tells me and go from there. Stay nimble and open.
by LeanLena
2
EURUSD Will Collapse! SELL! My dear friends, EURUSD looks like it will make a good move, and here are the details: The market is trading on 1.0828 pivot level. Bias - Bearish Technical Indicators: Supper Trend generates a clear short signal while Pivot Point HL is currently determining the overall Bearish trend of the market. Goal - 1.0792 About Used Indicators: Pivot points are a great way to identify areas of support and resistance, but they work best when combined with other kinds of technical analysis Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis. ——————————— WISH YOU ALL LUCK
Short
by AnabelSignals
1
Eurusd signal On Monday, EUR/USD remains rangebound around 1.0800, as risk-averse sentiment keeps the US Dollar buoyant amid ongoing tariff concerns, while investors remain wary ahead of "liberation day" - Support Zones: Initial support comes from the 200-day SMA at 1.0730. Below that, watch the 55-day SMA at 1.0561, the 100-day SMA at 1.0519, and the February 28 low at 1.0359. Further weakness could expose the weekly low of 1.0282 (February 10) and the 2025 bottom of 1.0176 (January 13).
Short
by Stiven088
1
Bullish bounce?EUR/USD is falling towards the support level which is a pullback support that lines up with the 78.6% Fibonacci retracement and could bounce from this level to our take profit. Entry: 1.0765 Why we like it: There is a pullback support level that line sup with the 78.6% Fibonacci retracement. Stop loss: 1.0732 Why we like it: There is a pullback support level. Take profit: 1.0836 Why we like it: There is an overlap resistance level. Enjoying your TradingView experience? Review us! Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
Long
by VantageMarkets
UPDATE ON EUR/USDEUR/USD 30 - As you can see price is playing out relatively well up to now, providing us with the structure we want and expected after the penetration of the Demand Zone below. I am expecting a continuation higher now but not without a slight pullback, you can see above I have drawn out a path I believe price will take, trading us down and into the fractal Demand Zone below before a move higher. This trade is currently running + 29 pips. (+ 1.8%) 1.8RR A big well done to those involved in this market, if you have any questions with regards to the analysis I have gone through today drop me a message or comment below. Please ensure you are taking partials and applying safety measures with the trades you are placing, its important that your trades are managed well to make the most of the trades themselves.
Long
by Lukegforex
EURUSD:Pay special attention to the resistance level at 1.0850In the future, two major variables will dominate the trend of the euro: 1、Details of tariff policies: If the US imposes tariffs on the EU with an intensity exceeding expectations, the euro may quickly test the support level of 1.0750. Conversely, if the measures are mild or postponed, the exchange rate may rebound above 1.0900. 2、Linkage of US economic data: If the manufacturing PMI and non-farm payroll data reinforce the "American economic exceptionalism", the US dollar may regain buying interest and suppress the euro. If the data is weak, it will solidify the expectation of an interest rate cut by the Federal Reserve in June, which is bearish for the US dollar. We can focus on the initial resistance level of 1.0850 above. If this level is not breached, one can attempt to short at high levels. Trading strategy: Sell@1.0850 TP:1.0750 Get daily trading signals that ensure continuous profits! With an astonishing 90% accuracy rate, I'm the record - holder of an 800% monthly return. Click the link below the article to obtain accurate signals now!
Short
by LeoBlackwood