Liquidity voids are extreme price imbalances that form during fast, vertical market expansions.
The Void Characteristics
Unlike Fair Value Gaps which span 3 candles, a Liquidity Void is characterized by a series of consecutive large-bodied candles moving in one direction. It represents a region where virtually no opposing orders were filled.
Algorithms will eventually retrace and deliver price back through the void to balance the market. Knowing how to target these void fill levels is key to high-R:R trades.
