The Pro Trader’s Guide to Fair Value Gaps
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.According to the research philosophies of Plazo Sullivan Roche Capital, Fair Value Gaps are the market’s way of revealing inefficiencies created when institutional orders hit the market too aggressively for price to fill normally.
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
FVGs expose where large players entered the market with force.
How to Trade Fair Value Gaps
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
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
Just as price gravitates back to AI forex trading tools 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.