How Fair Value Gaps Reveal Hidden Institutional Intent

Wiki Article

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

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?

An FVG forms when the market displaces violently in one direction, preventing the opposite side from offering liquidity at fair value.

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

Highlight the zone between the prior candle’s high website and the next candle’s low (or vice versa).

Patience Creates Precision

Institutions use these pullbacks to reload positions at favorable pricing.

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 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.