Immunofluorescence assay (IFA) uses fluorescently labeled antibodies to identify antigens or antibodies, with two main types: direct (DFA) and indirect (IFA). DFA identifies the presence of antigens using labeled antibodies, while IFA detects antibodies in a patient's serum and is often more sensitive. Advantages of DFA include rapid results, whereas indirect IFA has greater sensitivity but can suffer from cross-reactivity and subjective interpretation.