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.
The technical desk at Plazo Sullivan Roche Capital teaches that FVGs are less about prediction and more about understanding how algorithmic order books rebalance themselves.
The Science Behind Fair Value Gaps
This imbalance becomes a “gap” between the high of one candle and the low of the next, signaling that price must eventually return to rebalance.
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
Look for Strong Institutional Moves
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 Structure
An FVG entry aligned with higher-timeframe direction is exponentially more effective.
5. Use FVGs as Targets
Just as price check here 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.