What is a Liquidity Void?
Quick Answer: A liquidity void is a price zone with little traded volume created by explosive moves, often revisited later as order flow rebalances.
Understanding Liquidity Voids
A liquidity void (also called imbalance) is a price area with little trade activity, usually created by explosive moves. Markets often revisit voids to rebalance order flow.
Trading Liquidity Voids
Smart-money traders look for price to return into the void before resuming the trend. Combine void analysis with FVG concepts and structural support/resistance for entries.
Contextual Use
Voids aligned with higher-time-frame bias offer powerful trade setups, especially when they overlap with demand zones.
Risk Management
Not every void fills immediately; some remain open during strong trends. Manage expectations and avoid forcing countertrend trades solely because a void exists.
False Expectations
Assuming every void must fill leads to fighting momentum. Confirm with order flow or reversal signals before positioning.
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