Inversion Fair Value Gaps, on MT4 and MT5, follows a gap through its whole life instead of deleting it when price trades through.
Most fair value gap tools treat a filled gap as finished. This one treats that as the beginning of the interesting part. The zone stays on the chart, changes colour, and starts working in the other direction.
The moment a gap inverts
A bullish gap is drawn when a three-bar sequence leaves a hole and the middle candle closes above the hole's top. That closing condition is not cosmetic — it throws out the thin gaps that appear inside a single hour of chop and never meant anything.
The gap then sits there as potential support. Nothing unusual so far.
The inversion happens when a candle body closes below the gap's bottom. Not a wick through it, not a touch: the open-to-close range has to finish below the level. On that bar the zone is moved into the inversion list, its direction flips, and it's redrawn in the opposite colour from that bar onwards.
So on the chart you see one continuous zone that is green up to a certain candle and red after it. The colour change marks the exact bar where price rejected the level's original meaning.
The retest signal
Once a zone is inverted, the tool watches for price to come back and fail at it.
The condition is deliberately two-sided: the current bar has to close outside the zone in the inversion's direction, while the previous close was inside it. Price came back into the zone, and then left it again the way the inversion says it should. That's when an arrow is placed at the zone edge.
There's a distance rule attached. Nothing fires until at least Min distance bars have passed since the inversion, five by default. Without it the very next candle after the inversion usually satisfies the retest condition and you'd get a signal on every inversion, which is a signal that tells you nothing.
You can switch the "came back inside" test from close to wick with Signal Preference. Wick mode fires more often and earlier; close mode wants the bar to have actually settled inside the zone. Close is the default and it's the stricter of the two.
The ATR filter is doing more work than it looks
ATR Multiplier defaults to 0.25 against a 200-period ATR, and gaps narrower than that are never created at all.
On a Daily chart that's a real filter and it removes very little. On M5 it removes most of what you'd otherwise see, because most three-bar gaps down there are a few points wide and exist because of a spread widening. If you drop this tool on a fast chart and it draws almost nothing, this setting is why, and lowering it is usually the wrong fix.
| Ordinary FVG indicator | This | |
|---|---|---|
| Gap definition | Three-bar hole | Three-bar hole and middle candle closes past it |
| Size filter | Points, or none | Fraction of a 200-period ATR |
| When price fills the gap | Zone deleted | Zone flips colour and direction |
| Signals | On gap creation | On the retest of an inverted zone |
| Zone removal | On fill | On a body closing back through the inverted zone |
What it draws, and what it doesn't
Each zone is two rectangles: the original gap from where it formed to the bar it inverted, then the inverted zone from that bar to the current one, in the opposite colour. Plus a dashed midline, and a small arrow at each retest.
No buffers. Everything is a chart object, so iCustom gets you nothing. Alerts are the only route out.
No higher-timeframe view. Every gap is found on the chart timeframe. If you want gaps from H4 shown on M15, that's a different tool and I sell that one separately — this one is deliberately single-timeframe and its lifecycle logic is the thing it does that the other doesn't.
No history beyond the buffer. A hundred pending gaps and a hundred inverted zones are kept per direction. Past that the oldest are dropped, which on a Daily chart is years and on M5 is an afternoon.
Alerts
Three switches: gap inverted, retest, and zone invalidated. Inversion alerts are off by default because on an active chart they're constant; the retest and invalidation alerts are on.
One alert per bar, across all zones, enforced by a timestamp check. And the history pass is silent, so attaching this to two years of Daily data gives you two years of zones and no noise.
Where it's weak
A zone can only invert once. After the flip it either produces retests or gets removed when a body closes back through it. There's no second inversion, so a level that keeps being fought over stops being tracked after its second break.
The distance rule is measured in bars, not in movement. Five bars on a quiet Daily chart is a week; five bars on M1 is five minutes. On fast charts raise it.
Removal is unconditional. One body close back through the inverted zone and it's gone from the chart entirely, even if price immediately turns around. There's no "invalidated but still shown" state to look back at.
The gap size filter uses a 200-period ATR of the chart timeframe. On a chart with fewer than 200 bars of history loaded, gaps at the left edge get judged against an ATR that isn't warmed up yet.
Questions you'll have
Does Inversion Fair Value Gaps repaint? No. Everything is decided on closed bars behind a new-bar check. An inverted zone extends its right edge each bar while it's live, which is the zone still being valid, not the zone moving.
Why did my gap disappear instead of inverting? It probably never qualified. Both the three-bar hole and the middle candle's close past the hole are required, and the gap has to be wider than a quarter of the 200-period ATR.
What's the difference between this and the multi-timeframe FVG tool? That one shows gaps from a higher timeframe on your chart. This one works on the chart timeframe only, and tracks each gap through inversion and retest. Different jobs.
Why is there no arrow on the obvious retest? Either fewer than five bars had passed since the inversion, or the previous bar didn't close inside the zone. Switch Signal Preference to wick if you want the looser test.
Why does it draw almost nothing on M5? The ATR filter. Most fast-chart gaps are narrower than a quarter of the 200-period ATR, and they're mostly spread artefacts.
Can I read the zones from an EA? No. There are no indicator buffers; everything is a chart object. Use the alerts.
MT4? Both platforms are included, one download each. Same gap rule, same inversion, same retest condition.
Support
Message me through the site with a screenshot and the symbol and timeframe, and I can tell you which condition a zone failed. Updates are included for as long as your subscription runs.
Analysis tool. It places no trades and makes no profitability claim. Past price behaviour is not a guide to future price behaviour.