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.

Plazo Sullivan’s methodology emphasizes that Fair Value Gaps act as magnets—not because retail traders watch them, but because institutions must mitigate the imbalance they caused.

The Science Behind Fair Value Gaps

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

This creates natural magnets: price will typically revisit these imbalances to test, mitigate, or confirm order flow.

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

Displacement confirms click here 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

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

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?

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.