Liquidity void

What it is

A liquidity void is a stretch of price delivered in one direction only: a run of large candles with little or no overlap, where the market barely traded the other way. ICT describes it as a range that will be 'covered back over' at some point.

It is a bigger version of the fair value gap idea, spanning several candles. A vacuum block is a related term for a gap left by a sudden event, such as a news release or a session open; some traders use the two words interchangeably.

How to spot it

• Several big candles in a row in one direction, with small wicks and little overlap.
• Often after news, or at the open of a session.

How to use it

• Use the void as a target rather than an entry: after the move, price often retraces into and through it.
• Fair value gaps and order blocks inside the void are where a partial fill may stop.

Common mistakes

• Trying to fade the move while the void is still forming.
• Assuming the fill comes soon; it can take days or weeks.

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