Among all advanced price-action concepts, Fair Value Gaps stand out as the purest window into where smart money leaves its footprints.
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.
What Exactly Is a Fair Value Gap?
Professionals view this as unfinished business, and institutions often return to these zones to complete the auction process.
Why Smart Money Loves FVGs
FVGs expose where large players entered the market with force.
How to Trade Fair Value Gaps
1. Identify the Displacement
Before an FVG matters, there must be displacement—strong, directional movement marked by high volume or momentum.
Outline the Exact Imbalance Zone
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 Result?
They reveal where institutional orders entered, where here 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.