Inverse fair value gap
A fair value gap that price closes straight through has failed. The same zone often flips: old support becomes resistance. The retest of the flipped gap is the entry.
Watch it play out
Replay plays a setup this strategy already finished and stops so you can call it. Live watches for the next one on Bitcoin (BTC-USD, 1-minute candles). Either way a setup is marked only when a candle closes, then it's locked and plays out to its target or its stop. Nothing to trade here.
How the live chart applies the rules
- 1-minute candles. The chart runs every strategy on 1-minute Bitcoin candles from Coinbase, whatever timeframe the strategy page suggests. Times are New York time.
- Closed candles only. Levels, triggers and stops are read when a candle closes. Entry is that candle's close.
- One setup at a time. While a setup is playing out, the same strategy doesn't start another.
- Sensible risk only. A setup counts only if its stop is between a quarter and 6 times the average candle range (ATR 14) from entry (wider for session-range strategies), and its target is at least 0.75R away.
- How a setup ends. At its target or its stop. If one candle touches both, the stop counts. A setup also ends at any exit its page names, and after 120 candles (longer for trend and session strategies) if nothing is hit.
- Replays. A replay plays the latest setup this strategy finished on the live chart's recent history, sped up. It's the same setup the live chart confirmed, with the same entry, stop and result. If the strategy hasn't finished one recently, the replay uses example candles and says so.
- The trading day. A day runs 6:00 PM to 6:00 PM ET, like futures. VWAP restarts at 6:00 PM, and "yesterday" means the last full trading day.
How Inverse fair value gap works
- 1Where's the level?
- A fair value gap that a candle has closed through (the inverse gap).
- 2What's the trigger?
- Price comes back into the inverse gap and a candle closes back out of it, in the new direction.
- 3Where is it wrong?
- Just beyond the far side of the gap.
- 4Where does it end?
- 2 times the risk.
- Markets
- Futures, Stocks, Forex, Crypto
- Timeframes
- 1m to 15m
- Sessions
- New York and London sessions
- Also called
- IFVG, Inversion fair value gap
What it means
A fair value gap that price closes straight through has failed. The same zone often flips: old support becomes resistance. The retest of the flipped gap is the entry.
How it is confirmed without repainting
The gap, the close through it and the retest are each closed candles, in that order. The zone is fixed when the gap forms.
When it fails
Price closes back through the gap the other way. The flip did not hold.
Education only. Prop Firm Duel does not provide trade signals or financial advice. This page explains how the strategy is commonly defined. Past results never guarantee future results.
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