Why Fair Value Gaps Are the Market’s Most Overlooked Edge

Wiki Article

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.

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.

What Exactly Is a Fair Value Gap?

A Fair Value Gap appears when a three-candle sequence creates a price void: the middle candle moves so quickly that it leaves an area untraded.

Why Smart Money Loves FVGs

FVGs expose where large players entered the market with force.

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

Institutions use these pullbacks to reload positions at favorable pricing.

4. Align With Market Structure

Plazo Sullivan Roche read more 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.

The Result?

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 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.