IFEG FVG Inversion Strategy
Trade against the retail crowd with the IFEG FVG Inversion Strategy — intermediate difficulty
📊 intermediate
📍 NQ/ES Futures, Day Sessions
Strategy Overview
The IFEG FVG Inversion Strategy is a comprehensive trading strategy that involves identifying obvious support/resistance zones, waiting for a clean liquidity sweep, and then entering on the retest of the inverted FVG. This strategy is rooted in ICT methodology and is designed to help traders trade against the retail crowd.
Market Context — When This Strategy Works
NQ/ES Futures, Day Sessions
Shared Core Concept: FVG Inversion After a Liquidity Sweep
The IFEG (Inverse Fair-value-gap Entry) and ICT Inversion FVG strategies share the same foundational premise: instead of buying support or selling resistance like most retail traders, you wait for those levels to be violated and reversed, then enter on the retest of the fair value gap that formed during that violation.
- This is rooted in ICT (Inner Circle Trader) methodology.
- Traditional support and resistance trading relies on price bouncing from obvious, well-tested horizontal levels.
- The problem: the more obvious a level is, the more buy stops cluster just below it and sell stops just above it.
The Fair Value Gap (FVG) — Foundation
A Fair Value Gap is a three-candle price imbalance where the middle candle moves so aggressively that the wicks of candles 1 and 3 do not overlap, leaving a gap zone where price did not fully trade.
- This represents an area of market inefficiency.
- FVG Type Formation Implication: Bullish FVG, Bearish FVG
The Inversion / IFVG Mechanism
When price violently breaks through a support or resistance level, it creates a FVG during the large, aggressive breakout candle.
- Under normal ICT theory, price returns to fill that gap and continues in the same direction.
- In the IFVG / IFEG model, price breaks through the gap in the opposite direction, inverting it.
The Liquidity Sweep: Why This Setup Exists
This phenomenon is what ICT calls a liquidity sweep or stop hunt.
- Price dips below support not because the trend has reversed, but because institutions are filling buy orders against all those retail stop-loss sell orders.
- Once the liquidity is absorbed, price reverses sharply — the classic V-shape pattern.
Entry Rules
- Identify a clear S/R zone with at least 2–3 clear price touches in the same general area.
- Wait for a clean close through the zone.
- Confirm a Fair Value Gap formed during the breakout impulse.
- Watch for the V-shape reversal.
- No trades inside chop.
Exit Rules
- Target: Consequent Encroachment (CE) at the 50% midpoint of the FVG.
- Exit: IOFED (Internal Order Flow Entry Drill) at the near edge of the FVG.
Risk Management
- Stop placement: 1-2 points above/below the entry price.
- Risk rule: 2:1 risk-reward ratio.
Key ICT Concepts Used
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