Fair Value Gaps: The Blueprint Institutions Don’t Want You To Know

Among all advanced price-action concepts, Fair Value Gaps stand out as the purest window into where smart money leaves its footprints.

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.

What Exactly Is a Fair Value Gap?

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.

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.

2. Mark the Gap

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 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 Institutional here 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.