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What is Liquidity Vacuum?

A zone with thin structure and minimal traded volume, where price moves rapidly due to absence of limit orders.

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What is Liquidity Vacuum?

A zone with thin structure and minimal traded volume, where price moves rapidly due to absence of limit orders.
Liquidity vacuums appear as areas with minimal historical trading activity in the profile. When price enters these zones, it typically moves rapidly due to the absence of resting limit orders. These vacuums often form above poor highs or below poor lows, between separated distribution areas, or in gaps between trading sessions, creating opportunities for momentum-based strategies.

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