okay folks welcome back this is teaching number five of eight for the ICT mentorship content for December 2016. we're going to deal with specifically the reinforcing of liquidity voids and when to anticipate ranges to fill in okay a liquidity void is a range in price delivery where one side of the market liquidity is shown in wide or long one-sided ranges or candles price typically will want to revisit this porous range or void of contrarian liquidity okay we're going to look at an example of a liquidity void and when prices in a small consolidation or trading range we call this price in balance in other words prices in a point of equilibrium at some point price will eventually move out of the consolidation when this occurs we know that there's a participation in the form of smart money smart money is the only one that has the deep enough Pockets to cause price to move out of consolidations or move at all really in any significant manner this causes a price imbalance or as we call it displacement price can stay away from that drop down aggressively where there was only two or three candles that moved away from that consolidation that range can stay open for a while there's no specific time limit on how long it's going to take for these voids to close in and that's one of the repeating questions I get a lot is there a way to know how long it's going to take for these to fill in what that void would be in terms of how fast and when can we reasonably expect it to fill that's all going to be germane to what you're seeing in the Market at the time you see the voids they can stay open for months they can stay open just for a brief session intraday and they can close it in it's all going to be relative to what you see in price action around that void I say void what am I specifically looking at and referring to it's this small little area of price action where it was only delivered on the downside we have we have long bodied candles where price has only been delivered on the downside and has a small little Gap in between the two biggest Down Candles this is what we framed as a liquidity void now this is a one minute chart because a one minute chart is going to give me the opportunity to show you how there are pockets in these big runs and not this is a big run in terms of how many Pips it moved but it's a big move away from that consolidation in relative terms so the Shaded area that consolidation price moves aggressively away from that when we see this this is indicating that there are smart money in the marketplace and they believe that price is wanting to go lower now because they're smart money their their orders are going to be larger than ours and that means their participation is going to have to be scaled in they can't facilitate their entire net short position in all at one price so they have to gradually work that position in it may require them to take a little bit lower entry sometimes they maybe push it higher and run back above that consolidation and take it in the form of running out buy stops and they can sell to those buy stops but that's not the point of this teaching we're going to specifically deal with the liquidity void alone when we have a liquidity void and it's broken down like this what is it basically the same there's a void of buy side liquidity that means the markets aggressively moved away from that consolidation that's shaded in and because it repriced aggressively lower it was all on South Side liquidity only very little buying took place in that rundown so the nature of a liquidity void is that we'll probably see with a great deal probability I'll move back up into that 104.76 level which would cap or fill in the entire liquidity void that we see in the form of those two big candles that drop down away from that consolidation but remember it's a void of buy side liquidity that causes downward ranges like this which is what we call a liquidity void in other words we expect price to come back up and trade right back over those same price levels that we see here between 104.76 and 104.50 thereabouts okay let's take a closer look here with a five minute chart that's in consolidation you see this time it's only showing as one big five minute candle that drops down aggressively that same area is denoting a liquidity void again it's the absence of buyers or buy side liquidity and they're running lower aggressively repricing so prices jumping down into that 104.40 to 104 30 range before they start seeing buyers again but pay attention to these lows down here we're gonna take a look at something while price is showing a short-term support level like this what's going to be building up below those lows sell stops so if we anticipate price potentially going up and closing in that range that we've identified here as a liquidity void what we're seeing there is a big single five minute candle that's bearish sometime in the future we expect to see that entire range of that down candle that big long thin candle that we've identified here as a liquidity void that will be covered back over at some future time in other words with that range with bullish price action in order there's going to be a bullish candle or bullish price Wing that covers that entire range that's identified here with the liquidity void when it does that price action has been balanced out in other words it's been a complete and uniform delivery of price action it's been offered on the down move and it's been offered on the buy move up you see here the cell stops below those lows get ran and price runs up at this point here you would reasonably expect to see that liquidity boy completely closed in sometimes it does and then sometimes it doesn't sometimes it'll come right back down run an area of liquidity again that same equal lows and then it runs up and hits it and that last portion noted here you can see where that fills in the liquidity void closing right up on that 104 76 level looking at this price action here you can see there's several trades that you could have taken even on both sides of the marketplace but the ultimate draw on price was to get up to that 104.76 level closing in that liquidity void note again the stops that were ran below that low here right before the void was closed that low would be the buying opportunity and also you can see right before that load is being shown here with the arrow there was a short-term load that price dropped down below to hit that same 104 10 to 104.05 level uh the uh the buy stops that would be below 104.10 on the initial short-term low right above that bold Arrow I'm denoting for the last low before it drives up to that 104.76 level that run on those cell stops what was necessary for them to facilitate new logs so that way if they're going to take out the 10476 they're going to make it worth their while you're going to pick up some buy orders around 104.05 104 big figure depending upon what data feed you're looking at but on this here for the Forex LTD platform for demo trading the feed shows 104.05 thereabouts and then price it right makes a run of 75 Pips up to uh 104 76 and closes in that liquidity void seeing again just on a 15 minute time frame you see now that big one single 15 minute candle drops lower away from that consolidation again denoting that liquidity void and you can see now a little bit more friendly on the eye where the runs on those 104 10 and 104 08 cell stops would have been on the 15th and on the 16th of December but notice also here we have something that's a little bit interesting I want to show you there's two times it trades up into that 104.76 level but this time it Trace is a little bit higher than the first time I hit it first time I hit it it was around 1500 December 16th the second time I hit it was on the 19th of December when we see this second time run up into that it just pokes its head above the previous time it went above 104.76. but look at the two candles immediately after the run into 104.76 there's two Down Candles one has a little bit longer Wick and then the next candle it gaps down at the opening and creates a bearish candle I want you to look at something specifically in here see that little space right there where the bodies don't close in what is this this is a gap okay it's a price Gap so if price gaps in here how can we use this information we see that the liquidity void has been closed in they made it run one more time in the 104.76 blowing out the the level two times closing the void and if we know that they gapped down or made that liquidity void away from that consolidation around that 10480 institutional level that's what it's moving away from it trades back up into 104.75 or they're thereabouts two times it trades there we know that it's more likely to trade lower because it's moved aggressively away from that 10480 level and it's tried couple different times to get up there and remember pricing in on an Institutional level has to happen in graduated terms in other words it can't be done on the first pass it goes to a level it runs away from our level let's say like that first it runs away from a level in this case it moves lower from 104.80 and then it works its way up gradually up into that 104.75 level once and then sells off why did it sell off here initially in the on the 16th of December because they priced in some more selling so they build more of a natural position there then price trades one more time up in that 104.75 level 104.76 on the 19th of December and then we see price immediately two bearish candles but one gaps down a little bit what is it showing you there again an aggressive move that it wants to go lower but now it's giving you a golden opportunity this is where we're going to talk about gaps a little bit more liquidity voids our Gap during price Trading where it extends across the uh this distinct range when we see a gap where price has closed from one candle and gaps into another opening of another candle and that separation between the two price don't have a closure in other words it doesn't have a range closing that in it creates a common Gap what can we do with this common Gap well we have a inclination that we're going to be moving lower so if we're going to be moving lower and we see a gap here we can put an order in here the cell with a limit order at 104.70. so in that price Gap we can be a seller at that specific price level at 104.70. look at the reaction there once it closes in that Gap only the body closes it in it Wicks up into the body but the bodies of the up candle as it closes that Gap that's all that's necessary very very little drawdown and immediately it trades lower and reprices and makes it run down below the equal lows that's been formed on the 15th of December and the 16th of December seeing a little bit more information here in this 15 minute time frame you can see once that 10476 level had been hit the Gap had been closed at entry at 104.70 with an ideal use of a common Gap price makes a run for 104.04 cell stops where we can take a cover on positions that are short their cell stops are used to pair up short covering buys with and price makes one more leg lower making a run out on 103.65 so again one more time pairing up sell stop orders with buys to cover on shorts everything that I'm showing you here is this reverse with when the market is bullish and I'm going to give you examples in your PDF file so don't be uh feeling a little bit lost here because there's a lot of examples that I can give you on gaps in liquidity voids and Order blocks and you have a lot more information coming to you in supplementary teachings the last week of December because there's no trading on the week of Christmas while we're doing this mentorship but it will be daily teachings and it'll fill up your PDF file so your PDF file is going to be rich with a lot of content that can't be shown here for the sake of time