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How I Think About Trading Into a Liquidity Void

Sachin Yadav

A liquidity void is an area where relatively little trading or displayed liquidity may allow price to move quickly.

When NQ enters such an area, the move can be sharp because there may be fewer orders available to absorb aggressive trading.

But a fast move doesn't tell me exactly where price will stop.

I pay attention to the levels surrounding the void and whether new liquidity appears as price travels through it.

The lesson is simple: fast movement can create opportunity, but it can also make execution and risk management more difficult.

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