What Is a Liquidity Void?

Why does price sometimes move through an area so quickly?

A liquidity void generally describes an area where relatively little liquidity or trading activity is available compared with surrounding areas.

When aggressive orders encounter limited opposing liquidity, price may travel through that area quickly.

However, a fast move on a chart doesn't necessarily prove that a liquidity void caused it.

I would examine the actual market data, the volume traded, and the order book before drawing that conclusion.

These areas can help explain rapid price movement, but they shouldn't be treated as guaranteed magnets or guaranteed continuation zones.

Understanding what the market is doing is more useful than assigning a dramatic name to every fast candle.