The Pro Trader’s Guide to Fair Value Gaps

Wiki Article

If you’ve ever wondered how institutions seem to “know” where price will revert before major moves, the answer often lies in Fair Value Gaps.

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.

Where Fair Value Gaps Come From

A Fair Value Gap appears when a three-candle sequence creates a price void: the middle candle moves so quickly that it leaves an area untraded.

Why Smart Money Loves FVGs

Because institutions require massive liquidity, they often leave gaps behind due to the size of their orders.

The FVG Trading Model Used by Elite Traders
Look for Strong Institutional Moves

Before an FVG matters, there must be displacement—strong, directional movement marked by high volume or momentum.

Outline the Exact Imbalance Zone

This is the region where price is likely to return.

Patience Creates Precision

The best entries occur when price revisits the FVG, taps into it, and shows signs of rejection or continuation.

4. Align With Market Structure

Plazo Sullivan Roche Capital’s bias framework—weekly, daily, liquidity mapping—acts as the filter that upgrades an FVG from “possible” to “high-probability.”

Imbalances Work Both Ways

Marking both bullish and click here bearish gaps creates natural take-profit levels.

The Institutional Edge FVGs Provide

Fair Value Gaps give traders a rare glimpse into algorithmic intent.

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.