Implied Fair Value Gap (IFVG) ICT [TradingFinder] Hidden FVG OTE

11월 4일

🔵Introduction

The Implied Fair Value Gap (IFVG) is distinctive due to its unique three-candlestick formation, which differentiates it from conventional Fair Value Gaps.

Implied fair value represents an estimated worth of an asset—often a business or its goodwill—based on the price likely to be received in a structured transaction between market participants at a specific point in time.

In the ever-evolving world of technical analysis, pinpointing price reversal points and market anomalies can significantly enhance trading strategies and decision-making for traders and investors. Among the advanced concepts gaining traction in this field is the Implied Fair Value Gap (IFVG), introduced by the renowned analyst Inner Circle Trader (ICT).

This tool has proven to be an effective method for identifying hidden supply and demand zones in financial markets, offering a unique edge to traders looking for high-probability setups.

Unlike traditional gaps that are visible on price charts, IFVG is a hidden gap that doesn’t appear explicitly on the chart and thus requires specialized technical analysis tools for accurate identification.

This hidden gap can signal potential price reversals and offers traders insight into high-liquidity areas where price is likely to react. This article will guide you through using the ICT Implied Fair Value Gap Indicator effectively, covering its settings, usage strategies, and key features to help you make informed decisions in the market.

🟣Bullish Implied FVG



🟣Bearish Implied FVG




🔵How to Use

The IFVG indicator is designed to assist traders in recognizing hidden support and resistance zones by identifying Bullish and Bearish IFVG patterns. With this tool, traders can make better-informed decisions about suitable entry and exit points for their trades based on these patterns.

🟣Bullish Implied Fair Value Gap

This pattern occurs in an uptrend when a large bullish candlestick forms, with the wicks of the previous and following candles overlapping the body of the central candlestick.

This overlap creates a demand zone or a hidden support level, which can act as an ideal entry point for buy trades. Often, when the price returns to this area, it is likely to resume its upward trend, presenting a profitable buying opportunity.



🟣Bearish Implied Fair Value Gap

This pattern is similar but forms in downtrends. Here, a large bearish candlestick appears on the chart, with the wicks of adjacent candles overlapping its body. This overlap defines a supply zone or a hidden resistance level and serves as a signal for potential sell trades.

When the price returns to this zone, it often continues its downward trend, providing an optimal point for entering sell trades.



The IFVG indicator also includes various filters that traders can use to refine their analysis based on market conditions. These filters, including Very Aggressive, Aggressive, Defensive, and Very Defensive, allow users to customize the IFVG zones' width, offering flexibility according to the trader’s risk tolerance and trading style.

🟣Example Trading Scenarios

Suppose you’re in a strong uptrend and the IFVG indicator identifies a Bullish IFVG zone. In this scenario, you could consider entering a buy trade when the price retraces to this zone, expecting the uptrend to resume. Conversely, in a downtrend, a Bearish IFVG zone can signal a favorable entry point for short trades when the price revisits this area.


🔵Settings

Implied Block Validity Period: This parameter specifies the validity period of each identified block, taking into account the number of bars that have passed since its formation. Proper adjustment of this period helps traders focus only on relevant zones, increasing the accuracy of the analysis.

Mitigation Level OB: This option defines the mitigation level for supply and demand blocks (Order Blocks), with settings including Proximal, 50% OB, and Distal.

Depending on the selected level, the indicator will focus on closer, mid-range, or farther points for block identification, allowing traders to adjust for the level of precision required.

Implied Filter: Activating this filter allows traders to apply conditions based on the width of the IFVG zones. With options like Very Aggressive and Very Defensive, traders can control the width of IFVG zones to suit their risk management strategy—whether they prefer high-risk setups or low-risk setups.

Display and Color Settings: This section enables users to customize the appearance of the IFVG zones on their charts. Traders can set different colors for Bullish and Bearish zones, allowing for easier distinction and improved visualization.

Alert Settings: One of the standout features of the IFVG indicator is the alert system. By setting up alerts, users can be notified whenever the price approaches a demand or supply zone.

Alerts can be customized to trigger Once Per Bar (one alert per bar) or Per Bar Close (alert at the close of each bar), ensuring that traders stay updated on critical price movements without needing to monitor the chart continuously.


🔵Conclusion


The ICT Implied Fair Value Gap (IFVG) indicator is a powerful and sophisticated tool in technical analysis, allowing professional traders to identify hidden supply and demand zones and use them as entry and exit points for buy and sell trades.

This indicator’s automatic detection of IFVG zones helps traders uncover hidden trading opportunities that can enhance their analysis.

While the IFVG indicator offers numerous advantages, it is important to use it in conjunction with other technical analysis tools and sound risk management practices.

IFVG alone does not guarantee profitability in trading; it works best when combined with other indicators such as volume analysis and trend-following indicators for a comprehensive trading strategy.