Liquidity Voids Explained

A liquidity void is an area on the chart where price moved too fast for real two-way trade to occur. It’s an inefficient zone — barely any orders were executed there. That’s why price slices through it quickly again later. There’s nothing in the way.

What a Liquidity Void Actually Is

Liquidity voids form when aggressive order flow overwhelms the book and price jumps levels without meaningful transactions. It’s the same mechanic behind liquidity shocks — the book is empty, so price accelerates.

• thin volume
• big candles
• low transaction count
• no real battle between buyers and sellers

Why Price Loves Revisiting Voids

The market hates inefficiency. If price shot through a zone without trading, the market tends to come back later to “repair” it.

This is similar to how gaps fill — incomplete auctions get revisited.

How Liquidity Voids Form

Cause	Effect
News shock	Price jumps multiple levels instantly
Stop-run cascade	Forced orders push price through empty zones
Momentum burst	Thin liquidity fails to slow the move
Market maker pullback	No quotes → void prints

What Liquidity Voids Mean Going Forward

Voids tell you where price is likely to move next because:

• the area wasn’t fairly auctioned
• there’s no structure inside it
• liquidity is still thin there
• market tends to rebalance the inefficiency

How Traders Use Voids

• targets during trends
• retracement expectations
• mean reversion setups
• understanding why price accelerates in certain zones

Liquidity Voids vs. Gaps

Gaps happen when the market is closed; voids happen during live trading.

• voids = thin traded areas
• gaps = untraded areas