Mastering Fair Value Gaps

Wiki Article

Professional traders have long relied on Fair Value Gaps to time entries with almost surgical precision—often before the rest of the market even realizes what’s happening.

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

The Science Behind Fair Value Gaps

An FVG represents an inefficiency—an area where price moved too fast for opposing traders to fill orders.

The Institutional Logic Behind FVGs

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.

Imbalances Work Both Ways

Marking both bullish and bearish gaps creates natural take-profit levels.

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 read more 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.