Inversion Fair Value Gaps (IFVG) [LuxAlgo]

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The Inversion Fair Value Gaps (IFVG) indicator is based on the inversion FVG concept by ICT and provides support and resistance zones based on mitigated Fair Value Gaps (FVGs).

🔶 USAGE



Once mitigation of an FVG occurs, we detect the zone as an "Inverted FVG". This would now be looked upon for potential support or resistance.

Mitigation occurs when the price closes above or below the FVG area in the opposite direction of its bias.

• Inverted Bullish FVGs Turn into Potential Zones of Resistance.
  
• Inverted Bearish FVGs Turn into Potential Zones of Support.
  

After the FVG has been mitigated, returning an inversion FVG, a signal is displayed each time the price retests an IFVG zone and breaks below or above (depending on the direction of the FVG).

Keep in mind how IFVGs are calculated and displayed. Once price mitigates an IFVG, all associated graphical elements such as areas, lines, and signals will be deleted.



This indicator is not meant to be just a 'signal indicator'. Backtesting historical signals is incorrect as it does not consider the mitigation of IFVGs, which is a standard method for trading IFVGs & various concepts by ICT.

The signals displayed are meant for real-time analysis of current bars for discretionary analysis. Current confirmed retests of unmitigated IFVGs are still displayed to show which IFVGS have had significant reactions.

🔶 SETTINGS

• Show Last: Specifies the number of most recent FVG Inversions to display in Bullish/Bearish pairs, starting at the current and looking back. Max 100 Pairs.
  
• Signal Preference: Allows the user to choose to send signals based on the (Wicks) or (Close) Prices. This can be changed based on user preference.
  
• ATR Multiplier: Filters FVGs based on ATR Width, The script will only detect Inversions that are greater than the ATR * ATR Width.
  

🔶 ALERTS

This script includes alert options for all signals.

🔹Bearish Signal

• A bearish signal occurs when the price returns to a bearish inversion zone and rejects to the downside.
  

🔹Bullish Signal

• A bullish signal occurs when the price returns to a bullish inversion zone and bounces out of the top.