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
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.
The Institutional Logic Behind FVGs
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
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 when price revisits the FVG, taps into it, and shows signs of rejection or continuation.
4. here Align With Market Structure
An FVG entry aligned with higher-timeframe direction is exponentially more effective.
5. Use FVGs as Targets
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.