Mastering Fair Value Gaps

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.

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

An FVG represents an inefficiency—an area where price moved too fast for opposing traders to fill orders.

The Institutional Logic Behind FVGs

Because institutions require massive liquidity, they often leave gaps behind due to the size of their orders.

How to Trade Fair Value Gaps
1. Identify the Displacement

Before an FVG matters, there must Quantitative trading AI be displacement—strong, directional movement marked by high volume or momentum.

2. Mark the Gap

Highlight the zone between the prior candle’s high and the next candle’s low (or vice versa).

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 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.