ICT Liquidity Void PDF Download
ICT Liquidity Void PDF Download
ICT Liquidity Void PDF Download
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.
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 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.
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.
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.
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.