Fair Value Gaps: The Blueprint Institutions Don’t Want You To Know

Fair Value Gaps represent one of the few repeatable patterns that consistently expose the imbalance driving institutional pricing.

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.

Understanding the Anatomy of an FVG

A Fair Value Gap appears when a three-candle sequence creates a price void: the middle candle moves so quickly that it leaves an area untraded.

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

Marking both bullish and bearish gaps creates natural take-profit levels.

The Institutional Edge FVGs Provide

They reveal AI indicators for TradingView 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.