What is an IFVG? When a price gap flips its role

What is an IFVG?

In an uptrend, a pullback sometimes drops fast and leaves a bearish FVG: a price gap against the trend. At that point the zone acts as resistance.

If price later closes through the whole zone in the main trend direction, the zone is considered flipped: from resistance to support. A flipped zone is an IFVG (Inverse Fair Value Gap).

The IFVG setup, for example in an uptrend:

1. A bearish FVG forms during the pullback.
2. Price closes above that zone: the zone flips.
3. Price returns to touch the zone, and a bullish candle closes above the zone midpoint: that is the entry.

Why does a broken zone matter?

• The pullback has failed. The selling that created the bearish FVG could not hold price; the main trend is back.
• A clear invalidation level. If price closes back below the zone, the flip idea is wrong.
• The same logic as support–resistance flips in classic technical analysis, but with a rule-defined zone.

Common misunderstandings

• A wick through the zone is a flip. It must be a close through the zone.
• Every IFVG is tradable. An IFVG against the main trend is a top / bottom-picking strategy, much riskier.
• The zone stays valid forever. If the retest comes too late, the flip means less.
• IFVG and RETEST are the same. RETEST uses the same-direction zone left by a Break; IFVG uses the opposite-direction pullback zone, after it has been broken.

Chart example

Illustration, not real market data. The red zone is the pullback’s bearish FVG; the purple zone is after the flip.

How does AURORA Pro identify SMC IFVG?

• Stage 1, record the zone: during an up (down) trend cycle, an opposite-direction FVG of 0.2 ATR or more forms.
• Stage 2, the flip: within at most 30 bars, price closes beyond the far side of the zone. The zone turns purple on the chart.
• Stage 3, the retest: within at most 15 bars of the flip, price touches the zone and a with-trend candle closes beyond its midpoint. Label ⇄ SMC IFVG, with a Q score.
• Invalidation: price closes back through the other side, the time limit runs out, or the trend cycle flips. The zone turns grey.
• Structural stop: 0.1 ATR beyond the zone edge, at least 0.3 ATR from the entry; a ⚠SL label when wider than 4 ATR.
• Shared SMC conditions:
  • Trend-cycle direction only.
  • By default, price on the right side of the Trailing line.
  • The Entry Filter Profile minimum score applies.
  • On the same candle, BREAK / SUNNY win; within SMC, IFVG ranks after SWEEP and RETEST.
• Separate statistics in the ↳ ⇄ IFVG dashboard sub-row (Full layout).

Limits of IFVG

• Zones are often thin. A pullback FVG can be very small, pushing the stop out to the 0.3 ATR minimum.
• Rare. It needs three consecutive stages within time limits, so it is rarer than RETEST.
• Ranging markets create many small two-way FVGs and false flips.
• Validate it separately. Compare the IFVG row with RETEST and SWEEP across symbols before trusting the setup. Historical results, before costs.