The Implied Fair Value Gap (IFVG) is a concept introduced by ICT (Inner Circle Trader).
It’s a variation of the traditional Fair Value Gap (FVG) that focuses on how price moves without forming a traditional imbalance, but still leaves behind a gap based on price delivery expectations.
In simple terms, IFVG is a hidden imbalance in the market where price action moves too fast, skipping over what would normally be a fair exchange between buyers and sellers.
It may not look like a typical three-candle FVG on the chart, but Smart Money identifies these zones to rebalance price later.
1. Difference Between FVG and IFVG in ICT
| Concept | Traditional FVG | Implied FVG (IFVG) |
|---|---|---|
| Appearance | Clearly visible 3-candle gap | Often subtle or invisible |
| Structure | Candle A → B → C (gap between A & C) | Based on rapid price movement or displacement |
| Purpose | Shows imbalance in trade execution | Shows implied imbalance based on context |
2. How to Identify an IFVG in ICT
There are a few key things to watch for:
- Strong Displacement Candle: Price moves very quickly with large body candle (bullish or bearish).
- No Clear FVG: Unlike a regular FVG, there may not be a gap between candle wicks.
- Implied Revisit Area: Price tends to revisit the origin of the displacement later to rebalance.
3. Example 1 – Bullish IFVG on NAS100 in ICT
Let’s say:
- Price consolidates for a few candles.
- Suddenly, there’s a large bullish candle that breaks multiple short-term highs.
- No visible FVG is left (candle wicks touch), but the move was too fast for normal execution.
Later:
- Price returns to the origin of the move.
- It respects that level and bounces back up.
That origin is an IFVG zone, and Smart Money sees it as a rebalancing area.
4. Example 2 – Bearish IFVG on EUR/USD in ICT
Let’s assume:
- Price is consolidating on the 15-minute chart.
- A big bearish candle breaks a recent bullish structure.
- The wick of the next candle fills the body partially, so no visible FVG.
However:
- Price revisits that zone later and drops again.
This is an implied imbalance, where price moved away from equilibrium too quickly, creating a smart money reference point.
5. How Traders Use IFVG in ICT Strategy
Smart Money traders use IFVG to:
- Refine entry zones when no visible FVG is available.
- Anticipate rebalancing of price around the displacement origin.
- Align trades with order blocks or liquidity levels.
If an Order Block aligns with an IFVG, it becomes a very high-probability setup.
6. Practical Tips to Trade IFVG in ICT Strategy
- Use higher timeframes like 15M, 1H to identify IFVG zones.
- Combine with other ICT concepts like liquidity raids, order blocks, or SMT divergence.
- Watch how price reacts when returning to the origin of the displacement.
- Confirm with candle reaction (e.g., bullish or bearish rejection).
7. Final Thoughts
The Implied Fair Value Gap (IFVG) is a more advanced concept in the ICT framework. It teaches us that not all imbalances are visible, but price still responds to them.
By understanding IFVG, you start thinking like institutional traders—looking beyond surface-level charts and focusing on the intent behind price movement.
Would you like a chart image showing how an IFVG works in real-time?
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