Introduction


The forex market thrives on precision and timing, and traders using ICT (Inner Circle Trader) methods know the power of Fair Value Gaps (FVGs). The Inversion Fair Value Gaps MT4 Indicator is an advanced technical tool built upon the ICT concept of inversion FVGs. It helps traders identify powerful support and resistance zones based on mitigated FVGs, giving you an edge with real-time trading signals and actionable zones. This blog explores how the IFVG indicator works, its key features, and the trading strategy it unlocks.



???? Overview of the Inversion Fair Value Gaps Indicator


The IFVG Indicator is based on the Inversion FVG concept created by ICT and is built to highlight areas where market inefficiencies have been corrected (mitigated) and can now serve as significant support or resistance zones.


After mitigation — defined as the price closing beyond the original FVG in the opposite direction — the gap is labeled as an "Inverted FVG". These become highly sensitive trading zones that can predict potential price reactions upon retest.


Key Concepts:




  • Bullish IFVG → turns into Potential Resistance Zone




  • Bearish IFVG → turns into Potential Support Zone




Once the price retests and reacts to these zones, the indicator can display live bullish or bearish signals, giving traders a clear heads-up.



 


 



 


 


???? How It Works


Mitigation is the key mechanic behind this tool.


Mitigation Definition:
Occurs when the price closes above or below an FVG in a direction opposite to its bias. Once mitigated, the FVG flips — now acting as an inversion zone.


Price Behavior:




  • Retest of a Bearish IFVG → price may bounce upwards → Bullish Signal




  • Retest of a Bullish IFVG → price may reject downwards → Bearish Signal




However, once an IFVG is mitigated, all its graphical components (highlighted zone, signal, lines) are removed, making the chart cleaner and more focused.



⚙️ Indicator Settings


This MT4 version gives traders flexibility with smart customization options:




  • Show Last: Decide how many recent IFVGs you want to display (up to 100 max).




  • Signal Preference: Choose between signals based on Wicks or Close prices.




  • ATR Multiplier: Use Average True Range (ATR) filtering to ignore weaker zones by setting a minimum gap width condition based on ATR.




These settings are perfect for tailoring the tool to your personal trading strategy, time frame, and market style.



???? Built-in Alerts


Stay ahead of market moves with built-in real-time alert notifications. The indicator lets you configure alerts for the following:


???? Bearish Signal


When the price returns to a bearish inversion zone and drops – a potential short entry.


???? Bullish Signal


When the price bounces from a bullish inversion zone – a potential long entry.


These alerts are ideal for traders who want to automate their zone monitoring or integrate with mobile/desktop MT4 push notifications.



 


 



 


???? Why IFVG Is Not Just Another Signal Tool


Many traders make the mistake of backtesting this indicator like a normal signal tool. That’s not how the Inversion FVG concept works.



Backtesting historical signals won’t reflect true conditions since the indicator actively deletes mitigated IFVG zones — a core feature that mirrors real market behavior.



This makes it a real-time discretionary trading tool, perfect for price action traders who rely on confirmed zones, not just generic entry arrows.



???? Strategy Example with IFVG


Let’s say you see a bearish FVG, and the price closes above it — this is mitigation. The indicator now turns this zone into a bullish IFVG (support).


When the price revisits this zone and bounces up, you get a bullish signal.


At that point, you:




  • Confirm with volume or candlestick structure




  • Place a buy trade with a stop below the IFVG




  • Use a 1:2 RR targeting the next resistance




This is the power of inversion logic in a real-time strategy.



✅ Benefits of Using IFVG Indicator




  • Based on proven ICT methodology




  • Identifies high-probability zone-based entries




  • Removes mitigated zones for cleaner analysis




  • Combines discretionary and mechanical logic




  • Full customization & real-time alerts




Whether you're a beginner learning ICT or an experienced zone trader, this tool will upgrade how you look at market imbalances.