Mastering Fair Value Gaps

Wiki Article

Fair Value Gaps represent one of the few repeatable patterns that consistently expose the imbalance driving institutional pricing.

In the framework used by Plazo Sullivan, FVGs are treated as evidence of institutional displacement—and therefore prime zones for high-probability entries.

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.

The Institutional Logic Behind FVGs

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

How to Trade Fair Value Gaps
1. Identify the Displacement

Displacement confirms that institutional activity caused the imbalance.

Outline the Exact Imbalance Zone

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

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

more info 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.