How Fair Value Gaps Reveal Hidden Institutional Intent

Wiki Article

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.

Plazo Sullivan’s methodology emphasizes that Fair Value Gaps act as magnets—not because retail traders watch them, but because institutions must mitigate the imbalance they caused.

Understanding the Anatomy of an FVG

This imbalance becomes a “gap” between the high of one candle and the low of the next, signaling that price must eventually return to rebalance.

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
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 more info 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 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 Sullivan Roche Capital.

FVGs aren’t signals—they’re context.
And once you learn their language, the market starts to speak back.