iFVG Structural Framework

iFVG Structural Framework

iFVG Structural Framework is a rule-based visualization tool that identifies and tracks Inversion Fair Value Gaps (iFVGs) following defined liquidity events.

It is intended for analysts studying structural price behavior, liquidity dynamics, and displacement-based imbalances across multiple timeframes.

This indicator does not provide trading signals or forecasts.
All logic serves educational and analytical purposes only.

Overview
iFVG Structural Framework is a rule-based visualization tool designed to identify Inversion Fair Value Gaps (iFVGs) that occur after defined liquidity events.

The script processes price data sequentially and marks structural transitions only when a specific chain of conditions has been fulfilled:
1. Liquidity is taken from a prior swing or session level
2. A Fair Value Gap (FVG) forms during displacement
3. A full candle body closes through that gap within a defined validation window

The indicator does not forecast price direction and does not generate automated trade execution. It visualizes structural price behavior based on predefined logical conditions.

Conceptual Background
The framework is based on publicly discussed structural and liquidity principles such as:

• Swing High / Swing Low mechanics
  
• Liquidity sweeps
  
• Fair Value Gaps
  
• Displacement-based imbalance
  
• Inversion logic after imbalance mitigation
  

These concepts are widely known within market structure analysis.

The technical implementation, sequencing logic, multi-timeframe processing, context validation and object management have been independently developed in Pine Script.

No exclusive ownership of the underlying market concepts is claimed.

Logic Structure
The model operates sequentially and does not repaint.

1. Liquidity Detection

• Identification of pivot highs and lows
  
• Optional session-based high/low tracking
  
• Time-limited sweep validation window
  

2. Fair Value Gap Detection

• Body-based gap qualification
  
• Minimum tick-size threshold
  
• Optional higher-timeframe FVG layering (up to four HTF levels)
  

3. Inversion Qualification

• A complete candle body must close through a qualifying FVG
  
• Validation must occur within a defined bar window after liquidity is taken
  
• Wick-only penetration does not qualify
  

4. Optional Higher-Timeframe Context

• Detection of recently interacted HTF FVG zones
  
• Context window validation
  
• Optional requirement that the iFVG forms within an active HTF zone
  

5. Structural Activation

• Directional structural states are marked only after full sequence validation
  
• Optional session filter
  
• Optional directional bias filter
  

Visual Components

• iFVG box marking inversion area
  
• Activation line at close
  
• Higher-timeframe FVG zones
  
• Liquidity reference lines
  
• Optional stop-reference calculation based on historical extremum
  
• Automatic object lifecycle management to prevent chart clutter
  

All elements are generated from confirmed price data only.

Alert Structure
Two alert types are available:

• Preliminary structural setup (intrabar)
  
• Confirmed structural setup (bar close)
  

Alerts represent logical state changes only.
They do not execute trades.

Usage Guidance
Apply the script to any chart and timeframe.
The framework is fractal and operates consistently across instruments.

The iFVG line can be used to:

• Observe structural inversion events
  
• Monitor validation and invalidation sequences
  
• Study liquidity-to-displacement transitions
  
• Review multi-timeframe structural alignment
  

The indicator should be used as a structural analysis tool alongside independent market assessment.

Operational Notes

• All higher-timeframe calculations finalize on confirmed bar close.
  
• The script processes historical price data only.
  
• No order flow, tick data, or external data sources are used.
  
• No strategy or backtesting module is included.
  

Originality and Implementation
The underlying structural concepts are publicly known.

The sequential validation pipeline, context filtering, multi-timeframe engine, and object management system were independently developed for this implementation.

This script is published as invite-only to manage distribution and access.

Disclaimer

This script is provided for educational and analytical purposes only.
It does not constitute financial, investment, or trading advice.

No performance claims are made.
Past market behavior does not guarantee future results.

Users remain solely responsible for their trading decisions.