Why Fair Value Gaps Are the Market’s Most Overlooked Edge

Wiki Article

If you’ve ever wondered how institutions seem to “know” where price will revert before major moves, the answer often lies in Fair Value Gaps.

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.

The Science Behind Fair Value Gaps

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.

Why FVGs Matter

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

The FVG Trading Model Used by Elite Traders
Look for Strong Institutional Moves

Displacement confirms that institutional activity caused the imbalance.

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

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

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

Why FVG Trading Works

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 check here 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.