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.
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.
The Science Behind Fair Value Gaps
An FVG represents an inefficiency—an area where price moved too fast for opposing traders to fill orders.
Why FVGs Matter
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
This is the region where price is likely to return.
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.
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 here Roche Capital.
FVGs aren’t signals—they’re context.
And once you learn their language, the market starts to speak back.