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

Wiki Article

Fair Value Gaps represent one of the few repeatable patterns that consistently expose the imbalance driving institutional pricing.

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?

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 FVGs Matter

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
Look for Strong Institutional Moves

Displacement check here 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.

Bias Before Execution

Plazo Sullivan Roche 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.