The Pro Trader’s Guide to Fair Value Gaps
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.
Understanding the Anatomy of an FVG
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
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.
Outline the Exact Imbalance Zone
This is the region where price is likely to return.
Patience Creates Precision
The best entries occur when price revisits the FVG, taps into click here it, and shows signs of rejection or continuation.
Bias Before Execution
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.