LIQUIDITY VOIDS & GAPS

A Fair Value Gap (FVG) is commonly defined using a three-candle rule—for example, the high of the first candle does not overlap the low of the third candle for a bullish formation, with the inverse rule for a bearish formation. A liquidity void is a less standardized term that some traders use for a rapid move or a broad area with relatively little observed price overlap. The FVG definition is more mechanical when its candle and timeframe rules are specified; the boundaries of a liquidity void may be more subjective. Neither pattern proves that no transactions occurred or that orders remain unfilled. Define whether a revisit, partial entry, or complete traversal counts as a fill before collecting results.

The New Week Opening Gap (NWOG) is commonly marked between a Friday reference price and the first price available when the market reopens after the weekend. For example, a Friday reference of 1.0820 and a Sunday open of 1.0850 would produce a 30-pip difference. The size and definition depend on the price feed and chosen reference. Some ICT traders monitor this zone as a potential objective or reaction area. Price may partially trade into it, fully cross it, or leave it open. Use one explicit fill rule and measure how often it is revisited over a stated horizon; do not assume the gap dictates the week's direction or the timing of a fill.

A New Day Opening Gap (NDOG) is a difference between the selected prior-day close and the current daily open. Its appearance depends on the instrument, broker/feed and daily-candle definition. It can be marked as a possible reference area, but it is not proof of unfilled institutional orders. Before testing an NDOG rule, define the source prices and the meaning of a fill. Track whether price enters the zone, whether it fully crosses it, how long a revisit takes, and what happens afterward. Avoid assuming that London will sweep it, that it will become the day's first target, or that a fill signals the start of a directional move.

Not all voids and gaps fill completely before price continues. Understanding the difference between full fills and partial fills helps you manage entries and exits: FULL FILL: Price returns to the gap or void and trades completely through it -- from the near edge to the far edge. After a full fill, the zone is typically neutralized and price continues in the pre-fill direction (or establishes a new direction from the far edge). PARTIAL FILL (50% or CE Fill): Price returns to the gap and fills to approximately the midpoint (Consequent Encroachment), then reverses. This is more common with FVGs -- price fills to the CE and immediately reacts as institutional orders at the CE level are triggered. NO FILL (Immediate Continuation): Price occasionally gaps and continues in the gap direction without returning to fill. This is more common with extremely bullish or bearish commitment moves -- when institutional delivery is so aggressive that the algorithm does not reprice the gap immediately. These gaps remain open as future IRL targets. PRACTICAL APPLICATION: When price approaches a void or gap from a direction that aligns with your bias, expect a partial fill to CE as the primary entry zone. Full fills into a PD Array below/above the gap are secondary entries. Entering after a full fill that completely fills the gap reduces risk but also significantly reduces profit potential.

Integrating void and gap analysis into your ICT trading process: BEFORE THE SESSION: 1. Mark any open NWOG from Sunday (if applicable) 2. Mark the previous day close vs today's open (NDOG if gap exists) 3. Note all open daily and 4-hour FVGs that haven't been filled 4. Determine which gaps are in the direction of your daily bias (IRL targets) and which are opposing (potential obstacles or alternative targets) DURING THE SESSION: • If price approaches a gap in your trade direction, watch for the partial fill reaction at the CE • If price approaches a gap that opposes your existing position, prepare for potential reversal or partial profit taking • Gaps below a rising market are bullish support zones. Gaps above a falling market are bearish resistance zones. EXIT MANAGEMENT USING GAPS: One of the most useful applications of gap analysis is scaling out of winning positions as they approach opposing gaps. If you are long and an open bearish FVG exists 20 pips above current price, take a portion of profits before price reaches that FVG -- it represents a zone where price may stall or temporarily reverse before continuing.