A liquidity void is a stretch of price with very little trade behind it. How voids differ from Fair Value Gaps and why price often retraces through them quickly.
A liquidity void is a range of prices that was crossed quickly with very little transacted volume. Price moved through the area rather than trading within it, so there is little accumulated positioning at those levels.
A Fair Value Gap is a specific three-candle pattern; a liquidity void is a broader description of thin price. A void may contain several gaps, or none. In volume-profile language a void corresponds to a low-volume node — the same observation with a longer research history behind it.
There is little resting interest to slow it down. When price re-enters a void there are few orders to absorb the move, so it tends to travel until it reaches an area where real volume did transact. This makes voids useful for anticipating the speed of a move rather than its direction.
Voids are better for target placement than entries. Expecting price to slow inside a void is backwards — it is more likely to accelerate. The edges, where volume resumes, are where reactions become more probable.
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