The Pro Trader’s Guide to Fair Value Gaps

Wiki Article

Among all advanced price-action concepts, Fair Value Gaps stand out as the purest window into where smart money leaves its footprints.

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

This imbalance becomes a “gap” between the high of one candle and the low of the next, signaling that price must eventually return to rebalance.

The Institutional Logic Behind 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

Displacement confirms that institutional activity caused the imbalance.

Outline the Exact Imbalance Zone

This is the region where price is likely to return.

Patience Creates Precision

Institutions use these pullbacks to reload positions at favorable pricing.

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 Result?

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, more info the market starts to speak back.