How Fair Value Gaps Reveal Hidden Institutional Intent
Wiki Article
Among all advanced price-action concepts, Fair Value Gaps stand out as the purest window into where smart money leaves its footprints.
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.
Understanding the Anatomy of an FVG
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
For traders aligned with the methodologies used inside Plazo Sullivan Roche Capital, these retests become ideal trade entry zones.
How to Trade Fair Value Gaps
Look for Strong Institutional Moves
Before an FVG matters, there must 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.
Bias Before Execution
An FVG entry aligned with higher-timeframe direction is exponentially more effective.
Imbalances Work Both Ways
Marking both bullish and bearish gaps creates natural take-profit levels.
Why FVG Trading Works
Plazo Sullivan 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.