Difficulty: 🐳🐳🐳🐋🐋 (Intermediate+)
This article is best suited for traders familiar with volume profile, liquidity concepts, and price structure. It blends practical trading setups with deeper insights into how price seeks inefficiency and liquidity.
🔵INTRODUCTION
Ever wonder why price suddenly accelerates toward a level — like it's being magnetized? It’s not magic. It’s liquidity. Markets move toward areas where orders are easiest to fill, and they often avoid areas with little interest.
In this article, you’ll learn how to identify volume gaps and liquidity zones using volume profiles and price action. These tools help you anticipate where price wants to go next — before it gets there.
🔵WHAT ARE VOLUME GAPS?
A volume gap is a price region with unusually low traded volume. When price enters these areas, it often moves quickly — there’s less resistance.
Think of a volume gap as a thin patch of ice on a frozen lake. Once the market steps on it, it slides across rapidly.
Volume gaps usually show up on:
They’re often created during impulsive moves or news events — when price skips levels without building interest.
🔵WHAT ARE LIQUIDITY ZONES?
Liquidity zones are price areas where a large number of orders are likely to be sitting — stop losses, limit entries, or liquidation levels.
These zones often form around:
When price approaches these areas, volume often spikes as those orders get filled — causing sharp rejections or breakouts.
🔵WHY THIS MATTERS TO TRADERS
Markets are driven by liquidity.
Price doesn’t just move randomly — it hunts liquidity, clears inefficiencies, and fills orders.
Your edge: By combining volume gaps (low resistance) with liquidity zones (target areas), you can forecast where price wants to go.
🔵HOW TO TRADE THIS CONCEPT
1️⃣ Identify Volume Gaps
Use a visible range volume profile or session volume. Look for tall bars (high interest) and valleys (low interest).
2️⃣ Mark Liquidity Zones
Use swing highs/lows, OBs, or EQH/EQL (equal highs/lows). These are magnet areas for price.
3️⃣ Watch for Reactions
When price enters a gap, expect speed.
When it nears a liquidity zone, watch for:
🔵EXAMPLE SCENARIO
That’s price filling inefficiency and tapping liquidity.
🔵TIPS FOR ADVANCED TRADERS
🔵CONCLUSION
Understanding volume gaps and liquidity zones is like reading the market’s intention map. Instead of reacting, you start predicting. Instead of chasing, you’re waiting for price to come to your zone — with a plan.
Price always seeks balance and liquidity. Your job is to spot where those forces are hiding.
Have you ever traded a volume gap into liquidity? Share your setup below
This article is best suited for traders familiar with volume profile, liquidity concepts, and price structure. It blends practical trading setups with deeper insights into how price seeks inefficiency and liquidity.
🔵INTRODUCTION
Ever wonder why price suddenly accelerates toward a level — like it's being magnetized? It’s not magic. It’s liquidity. Markets move toward areas where orders are easiest to fill, and they often avoid areas with little interest.
In this article, you’ll learn how to identify volume gaps and liquidity zones using volume profiles and price action. These tools help you anticipate where price wants to go next — before it gets there.
🔵WHAT ARE VOLUME GAPS?
A volume gap is a price region with unusually low traded volume. When price enters these areas, it often moves quickly — there’s less resistance.
Think of a volume gap as a thin patch of ice on a frozen lake. Once the market steps on it, it slides across rapidly.
Volume gaps usually show up on:
- Volume Profile
- Fixed Range Volume tools
- Session or custom volume zones
They’re often created during impulsive moves or news events — when price skips levels without building interest.
🔵WHAT ARE LIQUIDITY ZONES?
Liquidity zones are price areas where a large number of orders are likely to be sitting — stop losses, limit entries, or liquidation levels.
These zones often form around:
- Swing highs and lows
- Order blocks or fair value gaps
- Consolidation breakouts
- Psychological round numbers
When price approaches these areas, volume often spikes as those orders get filled — causing sharp rejections or breakouts.
🔵WHY THIS MATTERS TO TRADERS
Markets are driven by liquidity.
Price doesn’t just move randomly — it hunts liquidity, clears inefficiencies, and fills orders.
Your edge: By combining volume gaps (low resistance) with liquidity zones (target areas), you can forecast where price wants to go.
- Volume gap = acceleration path
- Liquidity zone = destination / reversal point
🔵HOW TO TRADE THIS CONCEPT
1️⃣ Identify Volume Gaps
Use a visible range volume profile or session volume. Look for tall bars (high interest) and valleys (low interest).
2️⃣ Mark Liquidity Zones
Use swing highs/lows, OBs, or EQH/EQL (equal highs/lows). These are magnet areas for price.
3️⃣ Watch for Reactions
When price enters a gap, expect speed.
When it nears a liquidity zone, watch for:
- Volume spike
- Wick rejections
- S/R flip or OB retest
🔵EXAMPLE SCENARIO
- A strong bearish move creates a volume gap between 103 000 – 96 000
- Below 96 000 sits bullish order blocks — clear liquidity
- Price enters the gap and slides fast toward 96 000
- A wick forms as buyers step in, volume spikes — the reversal begins
That’s price filling inefficiency and tapping liquidity.
🔵TIPS FOR ADVANCED TRADERS
- Use higher timeframes (4H/1D) to define major gaps
- Look for overlapping gaps across sessions (Asia → London → NY)
- Align your trades with trend: gap-fills against trend are riskier
- Add OB or VWAP as confirmation near liquidity zones
🔵CONCLUSION
Understanding volume gaps and liquidity zones is like reading the market’s intention map. Instead of reacting, you start predicting. Instead of chasing, you’re waiting for price to come to your zone — with a plan.
Price always seeks balance and liquidity. Your job is to spot where those forces are hiding.
Have you ever traded a volume gap into liquidity? Share your setup below
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🔵Join our free discord for updates : bigbeluga.com/discord
All scripts & content provided by BigBeluga are for informational & educational purposes only.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🔵Gain access to our powerful tools : bigbeluga.com
🔵Join our free discord for updates : bigbeluga.com/discord
All scripts & content provided by BigBeluga are for informational & educational purposes only.
🔵Join our free discord for updates : bigbeluga.com/discord
All scripts & content provided by BigBeluga are for informational & educational purposes only.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.