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

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

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 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

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 Plazo Sullivan Roche Capital 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.

Why FVG Trading Works

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.

Leave a Reply

Your email address will not be published. Required fields are marked *