Fair Value Gaps (FVGs) have become one of the most powerful tools for traders who want to understand the true intentions of institutional order flow.
According to the research philosophies of Plazo Sullivan Roche Capital, Fair Value Gaps are the market’s way of revealing inefficiencies created when institutional orders hit the market too aggressively for price to fill normally.
Where Fair Value Gaps Come From
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
Because institutions require massive liquidity, they often leave gaps behind due to the size of their orders.
A Simple, Professional FVG Workflow
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.
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 read more 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?
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.