Fair Value Gaps represent one of the few repeatable patterns that consistently expose the imbalance driving institutional pricing.
The technical desk at Plazo Sullivan Roche Capital teaches that FVGs are less about prediction and more about understanding how algorithmic order books rebalance themselves.
Understanding the Anatomy of an FVG
An FVG forms when the market displaces violently in one direction, preventing the opposite side from offering liquidity at fair value.
Why Smart Money Loves FVGs
Because institutions require massive liquidity, they often leave gaps behind due to the size of their orders.
A Simple, Professional FVG Workflow
1. Identify the Displacement
Before an FVG matters, there must be displacement—strong, directional movement marked by high volume check here or momentum.
Outline the Exact Imbalance Zone
This is the region where price is likely to return.
3. Wait for the Retracement
The best entries occur when price revisits the FVG, taps into it, and shows signs of rejection or continuation.
4. Align With Market Structure
An FVG entry aligned with higher-timeframe direction is exponentially more effective.
5. Use FVGs as Targets
Just as price gravitates back to FVGs for entries, it also moves toward FVGs when they act as future magnets.
The Institutional Edge FVGs Provide
They reveal where institutional orders entered, where they left inefficiencies, and where price is likely to return.
Combine FVG logic with market structure, liquidity pools, and volume confirmation, and you have one of the strongest frameworks available to retail traders today—one that aligns perfectly with the advanced methodologies taught inside Plazo Sullivan Roche Capital.
FVGs aren’t signals—they’re context.
And once you learn their language, the market starts to speak back.