Inverse FVG Strategy

Discover an SMC trading strategy combining liquidity sweeps with Inverse Fair Value Gaps. Learn entry and exit logic for bullish and bearish setups across multi

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: strategy
  • Timeframes: Multiple time frames (implied, but specific examples on 30-second chart)
  • Markets: Not specified (examples shown on a stock chart, likely NASDAQ or similar index)

Indicators used

  • Lux Algo Liquidity Sweep indicator
  • Inverse Fair Value Gap (IFVG)

Source video

Decoded from: Stupid Simple Inverse FVG Strategy by LuxAlgo — watch the original

Key timestamps:

  • 0:00 - Introduction to the strategy concept
  • 0:30 - Strategy components: liquidity sweep, inverse FVG, target swing high/low
  • 1:00 - Building the custom indicator with Lux Algo Quant
  • 2:00 - Customizing indicator colors on TradingView
  • 2:30 - Example of a short setup
  • 3:40 - Example of a long setup
  • 4:30 - Recommended conditions for the strategy

Strategy overview

An inverse fair value gap is what a fair value gap becomes when price trades decisively through it instead of respecting it, so the imbalance is read as having flipped role — a zone that was expected to hold now caps. LuxAlgo's "Stupid Simple Inverse FVG Strategy" treats that flip as one part of a three-part inventory rather than as a signal standing on its own: a liquidity sweep, the inverse gap itself, and a target placed at a swing high or low. That third item is worth noting — a named exit is less common in short SMC clips than a named entry condition is.

What separates this entry from most inverse-FVG walkthroughs is where the runtime goes. In a video of roughly four minutes, the middle stretch — about 1:00 to 2:30 — is spent building the setup as a custom indicator with LuxAlgo's Quant tool and then configuring how its signals render on a TradingView chart, with two worked examples closing it out (a short at 2:30, a long at 3:40). The strategy is delivered as a chart object meant to be read at a glance, not as a checklist to be worked through. The multi-timeframe element is implied rather than stated; the only timeframe made concrete is the 30-second chart the examples run on, an execution granularity well below the usual intraday range.

Two things this page states plainly. No rule set was extracted for this entry, so what you get here is the concept and the source — no entry trigger, no filters, no risk parameters. And "Stupid Simple" is the channel's own packaging: read as a count of moving parts it is defensible at three, but read as a claim about difficulty it is not, since sub-minute charts make sweeps harder to identify and cost per trade heavier, and two on-screen examples are illustrations rather than evidence of anything.

Topics

inverse fvg strategy · smc strategy · ict trading · fair value gap · liquidity sweep · trading strategy · tradingview strategy · pine script · price action · scalping strategy · intraday trading · stock trading strategy · 30 second strategy · day trading

Frequently asked questions

What is an inverse fair value gap (IFVG)?

A fair value gap is an imbalance left behind when price moves too fast for both sides to transact. It becomes an inverse fair value gap when price trades through and closes beyond it instead of reacting to it, so the zone is treated as having flipped its role — a bullish gap that fails is then read as resistance, and the reverse for a bearish one.

What does this LuxAlgo video actually cover?

It names three components at 0:30 — a liquidity sweep, the inverse fair value gap, and a target at a swing high or low — and then spends a large share of its runtime assembling them into a custom indicator with LuxAlgo's Quant tool and setting up how it draws on a TradingView chart, before showing one short and one long example. The specific conditions that connect the three components are not part of this entry.

What timeframe does this inverse FVG strategy use?

Multiple timeframes are implied but never pinned down in the source. The only concrete one is the 30-second chart used for both worked examples. That is unusually fast even by intraday standards, so anyone testing the concept should choose a timeframe deliberately rather than inherit it from a demo.

Does this page include the full rules for the strategy?

No. No rule set was extracted from this video, so the page covers the concept and points back to the source instead. Strategy Decoder publishes decoded structure only where it could actually be extracted — where it could not, the entry says so rather than filling the gap with invented specifics.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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