How Fair Value Gaps Reveal Hidden Institutional Intent
Among all advanced price-action concepts, Fair Value Gaps stand out as the purest window into where smart money leaves its footprints.The technical desk at Plazo Sullivan Roche Capital teaches that FVGs are less about prediction and more about understanding how algorithmic order books rebalance themselves.
Understanding the Anatomy of an FVG
An FVG forms when the market displaces violently in one direction, preventing the opposite side from offering liquidity at fair value.
Why Smart Money Loves FVGs
Because institutions require massive liquidity, they often leave gaps behind due to the size of their orders.
A Simple, Professional FVG Workflow
1. Identify the Displacement
Before an FVG matters, there must be displacement—strong, directional get more info movement marked by high volume or momentum.
Outline the Exact Imbalance Zone
This is the region where price is likely to return.
Patience Creates Precision
Institutions use these pullbacks to reload positions at favorable pricing.
4. Align With Market Structure
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 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.