Mastering Fair Value Gaps

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If you’ve ever wondered how institutions seem to “know” where price will revert before major moves, the answer often lies in Fair Value Gaps.

Analysts within Plazo Sullivan Roche Capital highlight FVGs as a cornerstone of smart-money trading due to their high reliability in trend continuation and mean reversion setups.

Where Fair Value Gaps Come From

Professionals view this as unfinished business, and institutions often return to these zones to complete the auction process.

The Institutional Logic Behind FVGs

This creates natural magnets: price will typically revisit these imbalances to test, mitigate, or confirm order flow.

A Simple, Professional FVG Workflow
Look for Strong Institutional Moves

Displacement confirms that institutional activity caused the imbalance.

Outline the Exact Imbalance Zone

This is the region where price is likely to return.

Patience Creates Precision

Institutions use these pullbacks to reload positions at favorable pricing.

4. Align With Market Structure

An FVG entry aligned with higher-timeframe direction is 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 more info 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.