What is ICT Inversion Fair Value Gap?
ICT inversion fair value gap also known as inverse FVG is a failed fair value gap which is not respected by price.
An inversion fair value gap forms when a fair value gap fails to hold the price and price goes beyond breaking the fair value gap.
Inversion fair value gap signals the most initial shift in momentum of price.
As price moves in a direction its respects the fair value gaps and continues its move.
But if a fair value gap is violated it acts as a inverse fair value gap and signals the first shift in momentum of price which can result in a short retracement or a change in direction later.
How to Identify ICT Inversion Fair Value Gap?
To identify an inversion FVG you should first identify a Fair Value Gap .
As fair value gaps are of two types so the inversion fair value gap also has two types explained below.
(I) Bullish Inversion Fair Value Gap is basically a bearish fair value gap which is violated by price closing above it.
First of all you have to identify a bearish fair value gap and when price closes above the bearish fair value gap it becomes bullish inverse fair value gap.
Bullish inverse fair value gap acts as a support for the price and pushes price higher.
It indicates the losing strength of sellers and an initial shift in momentum toward buyside.
(II) Bearish Inversion Fair Value Gap is primarily a bullish FVG which fails to hold the price and price closes below it.
At first you have to look for a bullish fair value gap and when price violates it by closing below, it becomes bearish inverse fair value gap.
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