The Pro Trader’s Guide to Fair Value Gaps

Wiki Article

Fair Value Gaps (FVGs) have become one of the most powerful tools for traders who want to understand the true intentions of institutional order flow.

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.

Bias Before Execution

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 FVGs for entries, it also moves toward FVGs when they act as future magnets.

Why FVG Trading Works

Fair Value Gaps give traders a rare glimpse into algorithmic intent.

Combine FVG logic with market structure, click here 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.