February 3, 2026
ICT Inverse Fair Value Gaps Explained: How to Trade the IFVG
As traders evolve from discretionary execution toward algorithmic systems, precision becomes non-negotiable. The ICT methodology offers several structural concepts that lend themselves perfectly to automation. One of the most powerful, yet often misunderstood — is the Inverse Fair Value Gap (iFVG).

Introduction: Why Inverse Fair Value Gaps Matter in Automated Trading

As traders evolve from discretionary execution toward algorithmic systems, precision becomes non-negotiable. The ICT methodology offers several structural concepts that lend themselves perfectly to automation. One of the most powerful — yet often misunderstood — is the Inverse Fair Value Gap (iFVG).

Inverse Fair Value Gaps build directly on the Fair Value Gap concept (read the FVG article here), but introduce a shift in market behavior that signals potential reversals or regime changes. When automated, iFVGs become a highly repeatable and objective component of advanced trading systems.

Since we focus on building automated trading systems for MetaTrader 5, we will refer to these systems as Expert Advisors (EAs)

What Is an Inverse Fair Value Gap (ICT Definition)

An Inverse Fair Value Gap (iFVG) occurs when a previously valid Fair Value Gap fails, and price decisively trades through it. Instead of acting as support or resistance, the Fair Value Gap becomes inverted, signaling a potential shift in order flow.

From an ICT perspective, this inversion often indicates:

  • Failed institutional intent
  • Absorption of liquidity
  • A transition from continuation to reversal behavior
The Inverse Fair Value Gap Explained
The Inverse Fair Value Gap Explained

Structurally, an iFVG is identified by:

  • A valid Fair Value Gap formation
  • Price returning to the FVG
  • A decisive close beyond the opposite boundary of the FVG

Once inverted, the same price zone can be used as a new area of interest in the opposite direction

iFVGs are especially valuable because they highlight failed expectations. Markets are driven not just by what happens, but by what was expected to happen and did not. When an FVG fails, it reveals hidden information about liquidity and positioning.

This makes inverse Fair Value Gaps highly attractive for algorithmic trading systems that thrive on objective state changes.

Why Inverse Fair Value Gaps Are Ideal for Algorithmic Trading

We have ventured out on a mission to show you that every strategy can be automated, and that you can automate your own trading. 

Fair Value Gaps can be easily automated — because they are:

  • Rule-based
  • Candle-structure dependent
  • Timeframe-agnostic
  • Objectively measurable

The beauty of the iFVG is that we can use the same conditions as we used for the FVG and add a simple binary rule: 

Did the price close through the FVG?

We already showed you how you can draw the FVG using only 3 candles and what the basic rules are. When a candle closes through the FVG, you can mark it as an iFVG and look for reversal trades since the original trend direction has now been reversed. 

This eliminates interpretation and makes iFVGs easy to test, optimize, and deploy as part of an automated trading strategy.

Automating Inverse Fair Value Gaps Using Profectus AI

With Profectus, traders can transform the iFVG concept into a fully automated module without writing code.

Using Profectus, you can:

  • Detect Fair Value Gaps mechanically
  • Monitor invalidation conditions
  • Flip the FVG logic automatically
  • Apply consistent execution rules

This no-code trading approach allows traders to experiment, refine, and deploy institutional concepts in minutes.

Inverse Fair Value Gap in Profectus AI

I named the blocks to make it easier for you to understand what we’re doing in each Profectus block. We can divide the creation of this no-code EA for iFVGs into 4 steps. Remember, we can start by finding a regular FVG first.

  1. Run per candle block. Start with this block to make sure that every new candle that is formed on the chart, the EA runs through the whole process of finding an FVG, again and again. 
  2. Defining the FVG using Trade Rule blocks. The 4 blocks that follow house the criteria for the FVG. We already established that the FVG is a 3-candle pattern with:

    -A visible gap between the first and third candle wicks
    -Candles 1 and 2 showing impulsive strength

    I added one extra rule for refinement: the Liquidity grab. The low of candle ID 3 needs to be lower than the low of candle ID 2. 
  3. Store the FVG price levels. Once an FVG is found, we store it in a variable so that we can use this variable later to identify if the price comes back to it.
  4. Define a break of the FVG to turn it into an iFVG. Invalidation of an FVG is what leads to an iFVG. If a normal FVG is found, we instruct the EA to look for a candle close through the FVG and this flips the FVG into an iFVG. 

And that’s it! It only takes a few minutes to drag-and-drop the blocks and build the iFVG module in Profectus. You can now add an execution module to start taking trades, or add more rules to refine the iFVG, or add more confluences to the strategy. 

Deploying the Strategy as an MQ5 Bot on MetaTrader 5

Once automated, the Fair Value Gap strategy can be deployed as:

  • An MQ5 trading bot
  • Running 24/5 on MetaTrader 5
  • Executing trades exactly as designed once you add buy/sell blocks and rules

Why MT5?

  • Built-in algorithmic execution
  • Broker compatibility
  • Robust order handling
  • Industry-standard platform for automated trading

This allows you to move from manual chart analysis to mechanical automated trading.

Can You Automate Other ICT Strategies?

Yes. In our blog library, you can find a selection of automated ICT concepts and strategies

If a strategy has:

  • Clear rules
  • Defined conditions
  • Objective execution logic

It can be automated.

Inverse Fair Value Gaps are just one example of how institutional trading concepts translate perfectly into algorithmic systems.

Get Access to the Inverse Fair Value Gap Automation Template

Want to see how this Fair Value Gap strategy works when fully automated?

Access an enhanced automation template used to turn this ICT concept into a deployable MQ5 trading bot inside Profectus. This template has a trade execution module included, so you can start testing it right away!

Disclaimer: Templates are for educational purposes only!

👉 Get the Inverse Fair Value Gap Automation Template → ICT iFVG Profectus template 

Watch the youtube video here: https://youtu.be/alUfjejbvhs?si=yf1Gm9WSAqdNb4By