“📉 Mastering Inverted Fair Value Gaps in Trading! 💹 #TradingTips #FairValueGap #Market

1. Definition: An inverted fair value gap (FVG) in trading occurs when price returns to fill a previously created gap in the opposite direction, often seen after a sharp move. This price movement aims to “balance” the market by filling in the difference between an inefficient price move and its corrected state.

2. Market Structure: Inverted FVGs usually form when the price moves aggressively in one direction (upward or downward), leaving gaps on the chart. Traders may expect a price retracement, where the market fills these gaps before resuming its original trend, providing a potential entry point.

3. Trading Strategy: Traders use inverted FVGs as potential reversal or retracement signals. For example, if there’s a strong upward move leaving an inverted FVG below, traders may anticipate a downward move to fill that gap. This strategy is often combined with other technical indicators to improve accuracy.