How Fair Value Gaps Reveal Hidden Institutional Intent

Wiki Article

Professional traders have long relied on Fair Value Gaps to time entries with almost surgical precision—often before the rest of the market even realizes what’s happening.

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

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.

A Simple, Professional FVG Workflow
1. Identify the Displacement

Displacement confirms that institutional activity caused the imbalance.

2. Mark the Gap

This is the region where price is likely to return.

3. Wait for the Retracement

Institutions use these pullbacks to reload positions at favorable pricing.

4. Align With Market Structure

Plazo Sullivan Roche Capital’s bias framework—weekly, daily, liquidity mapping—acts as the filter that upgrades an FVG from “possible” to “high-probability.”

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.

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 check here 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.