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.
What Exactly Is a Fair Value Gap?
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 FVGs Matter
FVGs expose where large players entered the market with force.
How to Trade Fair Value Gaps
1. Identify the Displacement
Before an FVG matters, there must be displacement—strong, directional movement marked by high volume or momentum.
2. Mark the Gap
Highlight the zone between the prior candle’s high and the next candle’s low (or vice versa).
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 check here 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.