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.
Analysts within Plazo Sullivan Roche Capital highlight FVGs as a cornerstone of smart-money trading due to their high reliability in trend continuation and mean reversion setups.
What Exactly Is a Fair Value Gap?
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
For traders aligned with the methodologies used inside Plazo Sullivan Roche Capital, these retests become ideal trade entry zones.
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 check here 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 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.