If you’ve ever wondered how institutions seem to “know” where price will revert before major moves, the answer often lies in Fair Value Gaps.
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.
Where Fair Value Gaps Come From
An FVG represents an inefficiency—an area where price moved too fast for opposing traders to fill orders.
The Institutional Logic Behind FVGs
This creates natural magnets: price will typically revisit these imbalances to test, mitigate, or confirm order flow.
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.
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 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 read more Sullivan Roche Capital.
FVGs aren’t signals—they’re context.
And once you learn their language, the market starts to speak back.