Inverse Fair Value Gaps (HuntsPip)

Inverse Fair Value Gaps (HuntsPip) detects fair value gaps that have been invalidated by price trading through them, converting them into inverse FVG zones with flipped directional bias. It helps traders identify when a previously bearish gap becomes a bullish support zone or a bullish gap transforms into bearish resistance, offering refined re-entry opportunities as price retests these invalidated imbalances with the expectation that the flipped zone will now act as a point of continuation in the new direction.


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█ CONCEPTS

An Inverse Fair Value Gap (iFVG) builds on the standard fair value gap concept. A regular FVG is a three-candle imbalance where the wicks of the first and third candles do not overlap. An inverse FVG forms when price later trades completely through that gap in the opposite direction, invalidating the original imbalance. At that point, the gap flips its directional bias - a failed bullish FVG becomes a bearish iFVG, and a failed bearish FVG becomes a bullish iFVG.

In Smart Money Concepts (SMC) analysis, some traders interpret this flip as similar to how failed support can become resistance and vice versa. When price returns to an inverse FVG zone, traders watch for potential reactions aligned with the new directional bias. The Consequent Encroachment (CE) - the midpoint of the gap - is sometimes used as a reference level within the zone.


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█ WHAT IT DOES

This tool scans for fair value gaps as they form and then monitors whether price subsequently trades through the gap in the opposite direction. When this happens, the original FVG is drawn as a historical reference and a new iFVG zone is created starting from the point of invalidation, extending forward on the chart.

Both the original FVG and the inverse FVG are displayed as colored boxes. The iFVG uses the opposite color of the original gap to reflect the flipped bias. Optional dashed CE lines mark the midpoint of each zone, and optional labels identify them as "FVG" or "iFVG." Mitigation tracking monitors whether price returns to interact with the iFVG zone, changing the color of both boxes to a neutral shade when the selected condition is met. The indicator manages a display limit, removing the oldest validated zones when the maximum count is reached.


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█ FEATURES AND USAGE

INVERSE FAIR VALUE GAP

• Show Labels - Toggles the FVG and iFVG text labels on each zone pair.
  
  
• Colors - Two color pickers controlling the bullish and bearish zone colors. The iFVG automatically uses the opposite color of its original FVG.
  
  
• Mitigation - Toggle and dropdown controlling mitigation tracking for validated iFVG zones. A third color picker controls the mitigated zone color.
    - Close Outside - Price closes beyond the far edge of the zone.
    - Wick Outside - Price wicks beyond the far edge of the zone.
    - Close > 50% - Price closes past the midpoint (CE) of the zone.
    - Wick > 50% - Price wicks past the midpoint (CE) of the zone.
    - Close Inside - Price closes inside the zone.
    - Wick Inside - Price wicks into the zone.
  
  
• CE (Mid-point) - Toggles the dashed Consequent Encroachment line at the midpoint of each zone. A color picker controls the line color.
  
  
• Max Displayed - Controls how many validated iFVG pairs are shown on the chart at once. Range: 1-50. Oldest pairs are removed first when the limit is reached.
  
  
• Distance from LTP - Controls how far forward each active iFVG box and CE line extend beyond the current bar.
  

This tool works on any instrument and any timeframe. Because inverse FVGs require a standard FVG to first form and then be completely invalidated, they appear less frequently than regular FVGs and represent a more selective setup. Inverse fair value gaps are best used as confluence with other analysis - such as breaker blocks, market structure, or liquidity levels - rather than as standalone entry triggers.