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.

According to the research philosophies of Plazo Sullivan Roche Capital, Fair Value Gaps are the market’s way of revealing inefficiencies created when institutional orders hit the market too aggressively for price to fill normally.

What Exactly Is a Fair Value Gap?

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

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
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.

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

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 here 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.