The Pro Trader’s Guide to 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.

In the framework used by Plazo Sullivan, FVGs are treated as evidence of institutional displacement—and therefore prime zones for high-probability entries.

The Science Behind Fair Value Gaps

An FVG forms when the market displaces violently in one direction, preventing the opposite side from offering liquidity at fair value.

The Institutional Logic Behind FVGs

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

A Simple, Professional FVG Workflow
1. Identify the Displacement

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 more info 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 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.