Inversion FVG (iFVG) by EonMetricsInversion FVG (iFVG) by EonMetrics
🔶 WHAT IT DOES
A "fair value gap" (FVG) is a three-candle pattern where price moved so fast that the wicks of the first and third candle never overlapped — leaving a void on the chart that the market skipped over. While an FVG is fresh, traders typically expect a bullish gap to act as support and a bearish gap as resistance.
This indicator focuses on the moment that expectation FAILS — and on how it fails. An inversion FVG (iFVG) happens when price displaces through an existing gap with enough force to print a NEW fair value gap in the opposite direction, overlapping the old one. The inversion zone drawn by this script is the COMMON GROUND of those two opposing gaps — the price area where both imbalances intersect. That is where one side got trapped: broken demand turns into supply, broken supply turns into demand, and the market tends to defend that exact area when price returns to it.
It is a structure-annotation tool: it shows you where these events happen and how significant they were. It deliberately does not give buy/sell signals, entries, targets, stops, or win-rate statistics.
🔶 HOW THIS SCRIPT IS DIFFERENT
Most inversion-FVG tools use a simple rule: when a candle closes through a gap, the whole gap is recolored and called inverted. This script uses a stricter, structural definition, and adds level-management logic around it:
1. Two gaps required, intersection drawn. A slow drift through an FVG does not create an inversion here. The traversal must be violent enough to leave a fresh FVG in the opposite direction, and the zone drawn is only the overlap of the two gaps — the exact prices where the old imbalance and the new one coincide — not the whole original gap.
2. Spent levels never invert. The first candle close through the far side of a gap opens a short pairing window. If no opposing gap confirms within it, the level is considered spent and permanently dropped. Levels that price has already chopped through several times can never produce a late, meaningless inversion zone.
3. Levels are remembered independently of what you see. A gap's box may be mitigated and removed from the chart, yet its price range keeps working invisibly as a candidate level for a configurable number of bars. The displacement that flips a level often arrives well after the gap was first touched — display and detection are deliberately separated.
4. Partial consumption. When an opposing gap overlaps only part of a remembered level, only that part is consumed; the remainder stays available. A small opposing gap therefore cannot "steal" a large level from a later, proper displacement. One inverting gap can flip several remembered levels at once, and the resulting zones never overlap each other.
5. Two-condition strength grading. An inversion is tagged STRONG only when the inverting gap is both large relative to volatility AND backed by elevated volume on its displacement candle — size or volume alone is not enough.
🔶 HOW IT DETECTS EACH EVENT (THE EXACT METHOD)
1. Regular FVG: on every closed bar the script checks the classic three-candle condition — for a bullish gap, the current bar's low must be above the high from two bars ago (mirrored for bearish). Gaps smaller than a chosen multiple of ATR (a standard volatility unit, measured at the moment the gap forms) are ignored. By default these regular gaps stay INVISIBLE — they are tracked in the background purely as raw material for inversions, so the chart shows only what the tool is about: the inversion zones. One switch reveals them as a quiet context layer if you want to see what may flip next.
2. Regular FVG expiry (display): each displayed gap lives until price mitigates it, by your rules — at its 50% midpoint or only on a full fill, touched by any wick or requiring a candle close. Mitigated gaps disappear, or stay frozen as reference if you prefer. This controls only what you SEE.
3. Level memory (detection): independently of the display, every detected gap's price range is remembered for a set number of bars from its creation (Inversion Memory). A remembered level dies early if price closes through its far side and no opposing gap confirms within the pairing window (Pairing Window After Break) — that level is spent.
4. Inversion (iFVG): when a fresh gap forms in the OPPOSITE direction of a remembered level and their price ranges overlap, the inversion fires:
- The drawn zone is the intersection of the two full gaps: its top is the lower of the two gap tops, its bottom is the higher of the two gap bottoms.
- An overlap thinner than the Min FVG Size threshold neither draws a zone nor consumes the level.
- The zone is colored by its new role: support (a bearish gap was displaced upward through) or resistance (a bullish gap was displaced downward through).
- The zone is drawn starting from the ORIGINAL gap's origin, so you see the full history of the level — from the moment the imbalance first appeared, through the displacement that flipped it.
- The zone's age counter, retest and expiry logic are anchored at the inversion moment, not at the original gap.
5. Strong grading: the NEW (inverting) gap is measured. If its height is at least a chosen multiple of ATR AND the volume of its displacement candle exceeds the 20-bar volume average by a chosen multiplier, the inversion is tagged STRONG — the old gap was taken out with conviction on real participation, not by low-volume drift.
6. Inversion zone life: each iFVG shows its 50% equilibrium line (the consequent encroachment level), an age counter in bars, fires an alert on the first retest from outside, and expires by the same mitigation rules as regular gaps (50% or full, wick or close) once price trades through it against its new role.
Everything is evaluated on closed bars only, so zones, colors and labels do not repaint.
🔶 HOW TO ACTUALLY USE IT (STEP BY STEP)
1. Out of the box you see only inversion zones — that is the point of the tool. If you also want the raw material (regular gaps that may flip later), enable "Show Regular FVGs" and they appear as quiet green/red context boxes.
2. When a colored inversion zone appears, read its meaning: orange resistance = former demand that got displaced through downward; cyan support = former supply that got displaced through upward.
3. Give more weight to zones tagged STRONG — the inverting gap was large and backed by elevated volume, which traders treat as a more meaningful role-flip than a quiet leak.
4. The first return of price into the zone is the moment most iFVG traders wait for (there is a dedicated retest alert). Watch how price reacts there — rejection confirms the new role, a pass-through negates it.
5. The gray line inside each zone is its 50% midpoint (EQ) — many traders use it as the precise reaction level rather than the zone edges.
6. The age counter (e.g. "34b") tells you how long a zone has existed since its inversion — fresh zones are generally considered more reliable than stale ones, and you can enable fading to de-emphasize old zones automatically.
7. Combine with your own analysis of trend and higher-timeframe levels. The indicator describes structure; it does not predict.
If you want the full life cycle of REGULAR fair value gaps (creation, strength grading and retest alerts while they still act in their original direction), that is what our free Smart FVG indicator does — this tool picks up where it ends, at the moment a gap fails and flips. Both use the same visual language, so they pair naturally.
🔶 EVERY SETTING EXPLAINED
🔵Visualization group
- Bullish FVG / Bearish FVG — colors of the quiet regular-gap context layer.
- iFVG Support / iFVG Resistance — colors of the inversion zones.
- Show Regular FVGs — off by default: only inversion zones are displayed. Turn on to also see the not-yet-inverted gaps as context (hidden gaps are still tracked, so inversions keep firing either way).
- Show 50% Line (EQ) / EQ Line Color — the midpoint line inside each zone.
- Width Mode — how zones extend to the right: Dynamic (to the current bar), Fixed (a set number of bars), or Extended (infinitely).
- Fixed Width (bars) — zone width when Fixed mode is selected.
- Min FVG Size (x ATR) — the smallest height that registers, applied twice: to every new gap AND to the common ground of the two gaps (an overlap thinner than this neither draws a zone nor consumes the level); 0 disables both checks.
BEFORE ATR
AFTER ATR
🔵Mitigation group
- Delete Mitigated Zones — remove finished zones, or freeze them on the chart as reference.
- Mitigation Level — a zone is finished when price reaches its 50% midpoint, or only on a full fill.
- Mitigation Confirmation — what must reach that level: any wick, or a candle close.
- Inversion Memory (bars) — how long each detected gap's range stays eligible to form inversions, counted from the gap's creation and independent of when its box disappears from the chart. Larger = more inversions detected, including from older levels.
- Pairing Window After Break (bars) — once price CLOSES through the far side of a remembered gap, the opposing gap must confirm within this many bars for the inversion to count. If it does not, the level is treated as spent and dropped.
🔵Imbalance Age group
- Show Age Label — the bar counter inside each zone.
- Fade Old Zones / Max Age for Full Fade — gradually de-emphasize stale zones.
🔵Strong Inversion group
- Mark Strong Inversions — enables the two-condition strength check.
- Min Inverting Gap Size (x ATR) — condition 1: how large the inverting gap must be relative to volatility. Note this grades the STRONG tag only; it does not filter which zones appear (that is Min FVG Size).
- Min Volume (x SMA 20) — condition 2: how elevated the displacement candle volume must be versus its 20-bar average.
- Show 'STRONG' Tag — the text tag on qualifying zones.
🔵Labels group
- Show Labels / Label Text Color — master switch and color for all in-zone text.
- Label Offset (bars left of price) — keeps each zone's label trailing near the current bar so it stays readable, instead of sitting far back at the zone's left edge; 0 pins it on the current bar.
🔶 ALERTS
New iFVG Support / New iFVG Resistance / New STRONG iFVG / iFVG Retest / iFVG Mitigated — standard PulseWire alert conditions. Select "Once Per Bar Close" when creating alerts for non-repainting behavior.
🔶 WHAT THIS TOOL DELIBERATELY DOES NOT DO
No buy or sell signals, no take-profit or stop-loss levels, no win-rate dashboard. Detecting a structural pattern is not the same as having a tradable edge, and presenting pattern marks as trade signals would overstate what any indicator of this kind can honestly claim. Use it as a lens for reading market structure, together with your own judgment.
Indicator
Meridian Imbalance Ledger [JOAT]Meridian Imbalance Ledger
Introduction
Meridian Imbalance Ledger is an open-source imbalance mapping tool that tracks confirmed chart-timeframe, higher-timeframe, and micro-structure fair value gaps inside one coordinated framework. The script is designed to answer three practical questions: where imbalance was created, whether that imbalance is still active, and how price is behaving when it returns to those zones.
The indicator solves a context problem. Many imbalance tools only mark a gap once and leave the trader to manually judge whether it remains relevant. Meridian instead maintains a living ledger of active zones, inversion status, fill progress, age, and structural pressure so the chart shows which imbalances still matter and which ones have been consumed.
Core Concepts
1. Multi-source imbalance detection
Meridian separates imbalance generation into three sources:
Chart timeframe imbalances
Higher-timeframe imbalances requested with non-repainting offset logic
Optional micro-structure imbalance scans from lower-timeframe data
This allows a trader to see whether current price is interacting with local inefficiency, inherited higher-timeframe inefficiency, or smaller sub-bar displacement inside the current bar structure.
2. Fill progress and retirement logic
Each zone remains active until its fill rule is satisfied. The script supports configurable retirement behavior so zones can be treated as mitigated on a simple touch, midpoint interaction, or deeper body-based invalidation depending on the chosen rule set.
3. Inversion tracking
If price meaningfully breaches an imbalance, the zone can be treated as structurally altered rather than simply forgotten. Meridian keeps inversion state so prior bullish inefficiency can become resistance context and prior bearish inefficiency can become support context.
4. Age and pressure weighting
Not all zones deserve equal weight. Meridian tracks zone age and active count to create a pressure ratio that helps communicate whether bullish or bearish imbalance structure is dominating the chart right now.
Features
Chart, HTF, and micro imbalance layers: Multiple imbalance sources displayed in one coordinated ledger
Non-repainting HTF requests: Higher-timeframe data requested using historical offsets for safer confirmed context
Fill-progress tracking: Zones remain active until their configured retirement condition is met
Inversion state handling: Breached imbalances can remain visible as flipped structural context
Age-aware zone fading: Older zones visually decay to reduce clutter while retaining context
Pressure ratio and active counts: Quick read on whether bullish or bearish imbalance pressure is leading
Compact top-right dashboard: Displays counts, inversion totals, micro scan status, and bias ratio
Confirmed-bar alerts: New imbalance, inversion, and state transitions only trigger on confirmed bars
How to Use This Indicator
Step 1: Identify whether current price is trading inside fresh chart-timeframe imbalance or approaching older inherited imbalance from a higher timeframe.
Step 2: Use the dashboard counts and bias ratio to judge whether current imbalance structure is skewed toward support or resistance.
Step 3: Monitor inversion states. A previously bullish zone that has failed cleanly may become useful resistance context on retests.
Step 4: Treat micro imbalance scans as execution detail, not a standalone trend signal. The broader chart and HTF layers should carry more decision weight.
Limitations
Micro-structure scans depend on lower-timeframe availability and plan limits
HTF imbalances are intentionally delayed by one completed HTF bar to reduce repaint risk
An imbalance zone is contextual, not a guarantee of reversal or continuation
Originality Statement
Meridian Imbalance Ledger is original in the way it combines confirmed chart imbalances, non-repainting higher-timeframe imbalance inheritance, optional micro scans, and zone lifecycle management into one stateful framework. The script is intended as a structured market context layer, not a one-click entry signal.
Disclaimer
This indicator is provided for educational and informational purposes only. It does not provide financial advice or trade recommendations. Imbalance reactions can fail, invert, or be ignored entirely by the market. Always use independent confirmation and risk management.
Indicator
Time-Based Fair Value Gaps (FVG) with Inversions (iFVG)Overview
The Time-Based Fair Value Gaps (FVG) with Inversions (iFVG) (ICT/SMT) indicator is a specialized tool designed for traders using Inner Circle Trader (ICT) methodologies. Inspired by LuxAlgo's Fair Value Gap indicator, this script introduces significant enhancements by integrating ICT principles, focusing on precise time-based FVG detection, inversion tracking, and retest signals tailored for institutional trading strategies. Unlike LuxAlgo’s general FVG approach, this indicator filters FVGs within customizable 10-minute windows aligned with ICT’s macro timeframes and incorporates ICT-specific concepts like mitigation, liquidity grabs, and session-based gap prioritization.
This tool is optimized for 1–5 minute charts, though probably best for 1 minute charts, identifying bullish and bearish FVGs, tracking their mitigation into inverted FVGs (iFVGs) as key support/resistance zones, and generating retest signals with customizable “Close” or “Wick” confirmation. Features like ATR-based filtering, optional FVG labels, mitigation removal, and session-specific FVG detection (e.g., first FVG in AM/PM sessions) make it a powerful tool for ICT traders.
Originality and Improvements
While inspired by LuxAlgo’s FVG indicator (credit to LuxAlgo for their foundational work), this script significantly extends the original concept by:
1. Time-Based FVG Detection: Unlike LuxAlgo’s continuous FVG identification, this script filters FVGs within user-defined 10-minute windows each hour (:00–:10, :10–:20, etc.), aligning with ICT’s emphasis on specific periods of institutional activity, such as hourly opens/closes or kill zones (e.g., New York 7:00–11:00 AM EST). This ensures FVGs are relevant to high-probability ICT setups.
2. Session-Specific First FVG Option: A unique feature allows traders to display only the first FVG in ICT-defined AM (9:30–10:00 AM EST) or PM (1:30–2:00 PM EST) sessions, reflecting ICT’s focus on initial market imbalances during key liquidity events.
3. ICT-Driven Mitigation and Inversion Logic: The script tracks FVG mitigation (when price closes through a gap) and converts mitigated FVGs into iFVGs, which serve as ICT-style support/resistance zones. This aligns with ICT’s view that mitigated gaps become critical reversal points, unlike LuxAlgo’s simpler gap display.
4. Customizable Retest Signals: Retest signals for iFVGs are configurable for “Close” (conservative, requiring candle body confirmation) or “Wick” (faster, using highs/lows), catering to ICT traders’ need for precise entry timing during liquidity grabs or Judas swings.
5. ATR Filtering and Mitigation Removal: An optional ATR filter ensures only significant FVGs are displayed, reducing noise, while mitigation removal declutters the chart by removing filled gaps, aligning with ICT’s principle that mitigated gaps lose relevance unless inverted.
6. Timezone and Timeframe Safeguards: A timezone offset setting aligns FVG detection with EST for ICT’s New York-centric strategies, and a timeframe warning alerts users to avoid ≥1-hour charts, ensuring accuracy in time-based filtering.
These enhancements make the script a distinct tool that builds on LuxAlgo’s foundation while offering ICT traders a tailored, high-precision solution.
How It Works
FVG Detection
FVGs are identified when a candle’s low is higher than the high of two candles prior (bullish FVG) or a candle’s high is lower than the low of two candles prior (bearish FVG). Detection is restricted to:
• User-selected 10-minute windows (e.g., :00–:10, :50–:60) to capture ICT-relevant periods like hourly transitions.
• AM/PM session first FVGs (if enabled), focusing on 9:30–10:00 AM or 1:30–2:00 PM EST for key market opens.
An optional ATR filter (default: 0.25× ATR) ensures only gaps larger than the threshold are displayed, prioritizing significant imbalances.
Mitigation and Inversion
When price closes through an FVG (e.g., below a bullish FVG’s bottom), the FVG is mitigated and becomes an iFVG, plotted as a support/resistance zone. iFVGs are critical in ICT for identifying reversal points where institutional orders accumulate.
Retest Signals
The script generates signals when price retests an iFVG:
• Close: Triggers when the candle body confirms the retest (conservative, lower noise).
• Wick: Triggers when the candle’s high/low touches the iFVG (faster, higher sensitivity). Signals are visualized with triangular markers (▲ for bullish, ▼ for bearish) and can trigger alerts.
Visualization
• FVGs: Displayed as colored boxes (green for bullish, red for bearish) with optional “Bull FVG”/“Bear FVG” labels.
• iFVGs: Shown as extended boxes with dashed midlines, limited to the user-defined number of recent zones (default: 5).
• Mitigation Removal: Mitigated FVGs/iFVGs are removed (if enabled) to keep the chart clean.
How to Use
Recommended Settings
• Timeframe: Use 1–5 minute charts for precision, avoiding ≥1-hour timeframes (a warning label appears if misconfigured).
• Time Windows: Enable :00–:10 and :50–:60 for hourly open/close FVGs, or use the “Show only 1st presented FVG” option for AM/PM session focus.
• ATR Filter: Keep enabled (multiplier 0.25–0.5) for significant gaps; disable on 1-minute charts for more FVGs during volatility.
• Signal Preference: Use “Close” for conservative entries, “Wick” for aggressive setups.
• Timezone Offset: Set to -5 for EST (or -4 for EDT) to align with ICT’s New York session.
Trading Strategy
1. Macro Timeframes: Focus on New York (7:00–11:00 AM EST) or London (2:00–5:00 AM EST) kill zones for high institutional activity.
2. FVG Entries: Trade bullish FVGs as support in uptrends or bearish FVGs as resistance in downtrends, especially in :00–:10 or :50–:60 windows.
3. iFVG Retests: Enter on retest signals (▲/▼) during liquidity grabs or Judas swings, using “Close” for confirmation or “Wick” for speed.
4. Session FVGs: Use the “Show only 1st presented FVG” option to target the first gap in AM/PM sessions, often tied to ICT’s market maker algorithms.
5. Risk Management: Combine with ICT concepts like order blocks or breaker blocks for confluence, and set stops beyond FVG/iFVG boundaries.
Alerts
Set alerts for:
• “Bullish FVG Detected”/“Bearish FVG Detected”: New FVGs in selected windows.
• “Bullish Signal”/“Bearish Signal”: iFVG retest confirmations.
Settings Description
• Show Last (1–100, default: 5): Number of recent iFVGs to display. Lower values reduce clutter.
• Show only 1st presented FVG : Limits FVGs to the first in 9:30–10:00 AM or 1:30–2:00 PM EST sessions (overrides time window checkboxes).
• Time Window Checkboxes: Enable/disable FVG detection in 10-minute windows (:00–:10, :10–:20, etc.). All enabled by default.
• Signal Preference: “Close” (default) or “Wick” for iFVG retest signals.
• Use ATR Filter: Enables ATR-based size filtering (default: true).
• ATR Multiplier (0–∞, default: 0.25): Sets FVG size threshold (higher values = larger gaps).
• Remove Mitigated FVGs: Removes filled FVGs/iFVGs (default: true).
• Show FVG Labels: Displays “Bull FVG”/“Bear FVG” labels (default: true).
• Timezone Offset (-12 to 12, default: -5): Aligns time windows with EST.
• Colors: Customize bullish (green), bearish (red), and midline (gray) colors.
Why Use This Indicator?
This indicator empowers ICT traders with a tool that goes beyond generic FVG detection, offering precise, time-filtered gaps and inversion tracking aligned with institutional trading principles. By focusing on ICT’s macro timeframes, session-specific imbalances, and customizable signal logic, it provides a clear edge for scalping, swing trading, or reversal setups in high-liquidity markets.
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