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What Is a Liquidity Void Versus a Fair Value Gap?

Radhey

Liquidity voids and Fair Value Gaps are related ideas in some price-action methodologies, but they are not identical.

A Fair Value Gap is a specific three-candle price structure.

A liquidity void generally describes a broader area where price moves rapidly with relatively little trading interaction.

Both may help traders identify areas of inefficient price movement.

However, neither guarantees that price will return.

Remember: Understand the structure before assigning a trading meaning to it.

Do you use both concepts in your analysis?

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