Master ICT Liquidity Void

Are you an ICT trader and want to master ICT liquidity void?

In this blog we will teach you everything about ICT liquidity void from its identification to its use in trading with real market examples.

Lets start with defining the ICT liquidity void.

What is ICT Liquidity Void?

The word Liquidity means willing buyers/sellers in the market.

While the word Void means absence of something.

So ICT liquidity void means absence of buyers or sellers in the market as the case may be.

When price breaks a consolidation phase and moves in one direction strongly without a retracement or wick inside prior candlestick range, then the imbalance created by the candlesticks is knowns as ICT Liquidity void.

Bullish ICT Liquidity Void?

Bullish liquidity void is created when price breaks the consolidation range and moves strongly to the buy side targeting sell side liquidity.

Bullish liquidity void is created by a Displacement Move. Because of absence of the sell side liquidity price moves heavily to the buyside and creates imbalance termed as bullish liquidity void.

To Trade a Bullish Liquidity Void you have to look for market structure if it is bullish or bearish.

In bullish market price retraces back and fills the liquidity void after that it continues going higher. So you can look for buy setups inside bullish liquidity void.

So a bullish liquidity void acts as a good support in bullish market as you can see in the picture below.

While in bearish market, bullish liquidity voids are not respected by the price and mostly price will continue going lower after repricing the liquidity voids.

Bearish ICT Liquidity Void?

When price breaks a consolidation range to the downside with strong momentum and large candles, targeting the buyside liquidity it results in the formation of bearish liquidity void.

It is formed because of the absence of buyside liquidity and price continues going lower without any retracement making an imbalances known as bearish liquidity void.

To Trade a Bearish Liquidity Void first of all identify the market structure.

If the market structure is bearish price will retrace back and fill the liquidity void after that it will continue going lower, so you can look for sell setups inside bearish liquidity void.

Bearish liquidity voids act as a great resistance in bearish market as you can see in picture below.

But if the market structure is bullish and a bearish liquidity void is created in a retracement move then price may not respect it and it will continue going higher even after repricing the bearish liquidity void.

Does Liquidity Voids are Filled Instantly?

There is no time for the repricing/filling of a liquidity void.

Price may fill a liquidity void instantly or it may return to it after few days.

You can’t force price but you can wait for price and whenever it reprices the liquidity void you can look for your trade setups.

Will Price fill the Liquidity Void for Sure?

No! It is not necessary for the price to fill every liquidity void.

Price may create another liquidity void and may continue its move without filling the previous liquidity void.

Will Price Fill Liquidity Void Completely?

Sometime price may fill a liquidity void completely but sometime it may not.

So it is not necessary for the price to fill a liquidity void completely. But you have to wait for Consequent Encroachment (50% retracement) level of a liquidity void to be repriced before taking a trade.

Liquidity Void vs Fair Vale Gap

An ICT Fair Value Gap is a three candle formation with a gap between 1st and 3rd candlestick.

But a liquidity void can be a formation of 3 or more candlesticks and there can be 2 or more fair value gaps in a liquidity void.